|Speed Resistance Lines ("SRL"),
sometimes 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.|
Speed Resistance Lines display three trendlines. The slope of each
line defines a different rate at which pricing expectations are changing.
Prices should find support above the 2/3 line. When
prices do fall below the 2/3 line, they should quickly drop to the 1/3 line where they
should then again find support.
Speed Resistance Lines:
- Draw a line from a major low to a major high.
- Draw a vertical line on the day the major high occurred.
Divide this vertical line into thirds.
- Draw lines from the major low so they intersect the
vertical line at the 1/3 and 2/3 levels.
These lines are depicted in the foolowing chart:
Because this is an interactive drawing
feature, the user normally create the lines by selecting the first extreme point and then
dragging the mouse to the other extreme point. When the mouse is released, Chart FX FE
will make all the necessary calculations and draw the lines. Please note. it is not
necessary that the user clicks on a specific data point as the SR lines will be calculated
according to the axis scale and the position the mouse was released.