Speed Resistance Lines

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Speed Resistance Lines are normally used to divide a price swing into three equal parts. The first line is drawn like a Trendline except that it is drawn from the beginning of a price move to its end. The other two lines start at the same point but rise (fall) at 1/3 and 2/3 respectively of the rate of the first line.

Prices should remain above (below) the 2/3 line. If they breach that line, they should move to the 1/3 line and find support (resistance) there. See Gann Fans and Fibonacci Fans, which behave in a similar manner. See Disclaimer.

To draw Speed Resistance Lines you must draw a Trendline (press the button, or choose Trendlines from the menu). The Speed Resistance Lines are an option associated with Trendlines.

Speed Resistance Lines are normally drawn so that, if a vertical line were drawn from the second point of the Trendline to the Price Level of the first point, that vertical line would be divided into three equal parts. If for some reason you want something different, you can specify your own Levels. A negative number will produce a line at a smaller angle than the Trendline (which is how most people use Speed Resistance Lines); a positive number will produce a line at a larger angle.