Resistance Zone

A resistance zone is a range of prices where an asset has repeatedly struggled to rise above due to a concentration of sell orders. Unlike a single resistance level, a zone accounts for the reality that selling interest is often spread across a range rather than a single exact price.

Traders identify these zones to plan their profit-taking or to wait for a breakout before entering new long positions. Understanding that resistance is often a zone helps traders avoid buying too close to potential price ceilings, allowing them to manage their risks more effectively.

It is a cornerstone of technical chart analysis.