Technical Glossary / Support, Resistance & Price Levels
Resistance Zone
A band of prices, not a single tick, where supply has appeared.
Teaching sketch. It shows the shape, not a live quote and not a trade signal.
Definition
A resistance zone is the thickness of resistance. Several highs, wicks, and failed closes cluster. The band is the supply area. A break is a close through the far side, not a wick into the near side.
How to identify it
Box the cluster of swing highs. If one spike sits far above a tight cluster, decide whether the spike is the zone or a sweep beyond the zone. Write it down before you trade it.
Bullish reading
Acceptance is time and closes inside and then above the zone, not one wick through it. Buyers who need a breakout want a close beyond the box and often a retest.
Bearish reading
Rejection back out of the zone supports the short, with risk above the box. In a downtrend this is the rally into supply.
Common mistakes
Widening the zone after price goes through it, so that the break "has not happened yet."
Limitations
A zone from a different regime, before a split, a crash, or a long trend, may be a memory rather than a live order cluster.
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.