Business, Legal & Accounting Glossary
Speed Resistance Lines are similar to Fibonacci Fans, except the angle the trendlines are drawn at are equal, not based on Fibonacci numbers. Speed Resistance Lines are used to identify angular support and resistance.
The Speed Resistance Lines are three trendlines are drawn as follows: The first trendline is connected between the highest high and the lowest low on the chart. The other two lines are drawn through 1/3 and 2/3 of the vertical line which is from the second extreme point to the first extreme point.
The Speed Resistance Lines are used to identify support and resistance. The 2/3 line is the first support line. If the price penetrates the first support line, the 1/3 line will be the new support line and the 2/3 line will become a resistance line.
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This glossary post was last updated: 25th March, 2020 | 0 Views.