Glossary › dynamic resistance
Trading glossary · indicators
dynamic resistance
A moving line, like an average price line, that price keeps bumping into from below while a fall goes on.
The fuller meaning
A moving average or other sloping line that caps rallies during a downtrend, acting like a moving ceiling. It only works while the trend lasts; in sideways markets price cuts through averages, so traders treat touches as zones and look for a price signal.
dynamic resistance, also called moving ceiling.
Related words
61.8% level · ATR · ATR expansion · bearish divergence · Bollinger Bands · bullish divergence · crossover · %D · death cross · divergence