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Resistive touch displays are single touch only, and usually have some thin flexible layer over the screen that have to be pressed down. When the layer makes contact, a circuit is completed and the resistance value of the current in the circuit is measured and used to calculate position. Capacitive displays have an invisible layer that small amount of electrical charge is stored on. When you touch, the charge is transfered to you, and the loss of charge is measured. The positive part of capacitive displays, is that there are no moving parts, and you can have it done in a way to allow for multiple touch points (not possible on resistive).
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