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Speed Resistance Lines
Description
Speed Resistance Lines, also called 1/3 - 2/3 lines, are a series of
trendlines that divide a price move into three equal sections. They
are similar in construction and interpretation to Fibonacci Fan
Lines.
Interpretation
Speed Resistance Lines are used to define price support
levels. For example, if a security is in a rising trend, its price
will usually stay above the 2/3 Speed Line. If prices do penetrate
the 2/3 line, they will generally fall all the way to the 1/3 line
before regaining support.
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