Info 1: resistance line definition
Info 2: how the resistance line works
Info 3: resistance line vs resistance
Info 4: example of resistance line
Opening information:
The resistance line breaks into two words resistance and line, resistance means key for converting or stopping one function, and line means narrow. A resistance line is a line marked with one key function.
So now let’s look at what is a resistance line, how the resistance line works in the public market, and what is the difference between the resistance line and resistance, finally one brief example of the resistance line.
Info 1: resistance line definition
Mr. Midean is a stock investor who trades in securities using medical tools. He is not interested in trading any kind of Securities for a long time, instead, he focuses on price fluctuation.
Trading above the fluctuation of price charts doesn’t make him profitable, but his tools which he used to make any entry at each of the new trades would lead him to speculating profit in the short term.
When he didn’t reach the right point to enter the trade, he patiently waited until the Securities reached his desired entry price once it reached trade was executed by the Midean.
However, without his tool, he can’t enter the trade at any point in the priced market. That tool is a simple horizontal line that would take place above the current market price.
Whenever the current market price crisscrosses the line above, the trade would place as per Mr. Midean ma Mideanrder.
After the trade was executed he drew one more horizontal line above the current market price, when again Current stock price grossed above the second line that was placed by him another trade was executed.
So whenever the price of the market would gross the Horizontal line that’s placed above the Current market et price, new trade gets executedgets the Mr.mideaere Mideantime that horizontal line that’s placed above the current price by Midean would be called as resistance line.
Any of the horizontal lines that are aligned above the current price in any kind of Securities market would be named as a resistance line in the stock market.
Now let’s dive into how the resistance line works and is involved in the public market.
Info 2: how the resistance line works
Resistance lA resistance represents any of the specific things or objects a simple line that is used to place the trade at the Securities market.
So when any of the line traders use it as a tool to place it above the current market, it’s considered as a resistance line until the stock price across such line.
Suppose the Supposeame horizontal line placed below the current market price is not categorized as a resistance line until the Current market price falls below the line that’s placed under the current security market.
Moreover, a resistance line is not just a Simple line, the real meaning of resistance is refusal for it’s against an object, which helps to protect from the wrong flow.
The resistance line stated the same things, it’s a protection or opportunity from the wrong or favored market move it’s gave opportunity to enter or close the trade in the public securities for the Investor.
Some investors would use the resistance line to close the trade or signal to end the trade in the market, but it’s a pure line that is used to trade the stock for different purposes based on how certain Investors could use it.
Most people confuse the resistance line and resistance, so let’s jump into the key difference in it anyway.
Info 3: resistance line vs resistance
The resistance line refers to the horizontal line at the one market price, it’s used by the Investor as a technical tool to predict the market easily over the future.
On the other side, resistance is a substance that is used in tech products to stop something covert or move for a certain function.
So in the stock market, the horizontal line that’s used above the market price moves for executive the function of trade which that’s line is known to be the resistance line.
But there is no scientific evidence that a resistance line is alone used to execute the market order indeed it’s one kind of horizontal line-like resistance which are used for a specific function purpose.
Info 4: example of resistance line
Say company Y is the one which is trading at 23 dollars and you’re the stock trader that places the resistance line at 40 dollars and you created the order to execute the trade at at 42 dollars.
When stock Y grosses the 40-dollar price and moves the 42-dollar, the order of the market will be executed.