Technical Glossary / Support, Resistance & Price Levels
Horizontal Resistance
Resistance drawn as a flat price, not as a falling trendline.
Teaching sketch. It shows the shape, not a live quote and not a trade signal.
Definition
Horizontal resistance is a constant price where rallies have stopped. Prior highs and the top of a range are the usual sources. The price does not fall as time passes. The market has to deal with the same number again.
How to identify it
A horizontal line through reaction highs. Two touches minimum before you treat it as more than a single pivot.
Bullish reading
A close above flat resistance is the cleanest breakout definition, because there is no argument about slope. The retest of that same price is the throwback.
Bearish reading
Rejection at a flat high, with risk above it, is the short version. In a range this is one edge. In a downtrend it is a rally into supply.
Common mistakes
Drawing several horizontal lines until one of them fits the last high, then calling it planned.
Limitations
A flat line on a log chart and the same line on a linear chart are the same price. Do not confuse this with a trendline, which does change with the scale.
This note explains the term. A sketch shows the shape of the idea. Neither is a recommendation, a signal, or a comment on any security. Indicator settings and exchange conventions differ. Check the live chart and the contract specification before you use a number.