First of all, how to identify a resistance point: the first thing you want to do when looking for a trade is to look for a resistance point, to tell if it is a resistance point or not, you have to see if there are any candles that stay around the same area or if you see a common high in the charts.
What to do if you see a resistance point: DONT buy it, yet. You should label the resistance point(like what I did in the chart above) and wait to see if the stock actually breaks the resistance point(if it does not break it after a long period of time MOVE ON to another company)it indicates that the market has the strength to become . Hence you can buy the stock.
Effects of a resistance point: the stock would go downwards and you will have a loss. Unless it has an candle to counter the loss. NYSE:H