Resistance trading is a strategy that focuses on price levels where an asset has struggled to rise above in the past. These levels are known as resistance points. When the price approaches these points, traders anticipate that selling pressure will emerge, potentially causing the price to drop.Traders use resistance levels to make informed decisions about when to buy or sell. If the price reaches a resistance level, some traders may sell their holdings, expecting a price decline. On the other hand, if the price breaks through a resistance level, it might signal a strong upward trend, prompting traders to enter a position.Additionally, resistance trading often involves analyzing charts and patterns to identify these levels. Traders look for horizontal lines, trendlines, or previous highs that can indicate where resistance may occur. Understanding these points helps traders manage risks and set targets effectively, contributing to their overall trading strategy.