Jesse Livermore's concept of the Line/Path of Least Resistance is at the core of his trading philosophy, meaning:

1. One-sentence definition

Prices always move in the direction of least resistance, just like water flows downhill.

- Not based on what you "think" should go up or down
- But determined by market funds, supply and demand, and sentiment: which direction is easiest to move, least effort

2. Essence: The comparison of bullish and bearish forces

- Least resistance upward: buy orders > sell orders → easy to rise, shallow pullbacks, volume on breakouts
- Least resistance downward: sell orders > buy orders → sharp decline, weak rebounds, volume on breakdowns
- Sideways (no direction): bulls and bears balanced → tug-of-war, low volume, unclear direction

3. How to judge (Livermore's method)

1. Observe high and low point structures - Uptrend: higher highs, higher lows
- Downtrend: lower highs, lower lows
2. Key point breakouts (most important) - Volume breakout above previous high/important resistance → least resistance upward
- Volume breakdown below previous low/important support → least resistance downward
3. Is the trend "smooth"? - Direction of least resistance: fast, decisive, few pullbacks
- Not least resistance: hesitation, repeated moves, oscillation, low volume

4. His trading mindset (directly related to the least resistance)

- No prediction, only follow: let the market tell you the direction, then go with it
- No bottom-fishing, no top-tapping: tops and bottoms are the greatest resistance points
- Make big money by sitting still: follow the least resistance trend and hold on
- During sideways movement, avoid heavy positions: wait for clear direction (key point breakout) before acting

5. Simple analogy

You push a log in the river:

- With the flow: gentle push → least resistance
- Against the flow: exhausting effort → maximum resistance

One-sentence summary:
Least resistance = the strongest, most consensus, least effort direction in the current market. Trading is about identifying it, following it, and not fighting against it.