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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. |
