Speed Resistance Lines
Speed Resistance Lines divide the trend into three sectors, or thirds. This is similar to Fibonacci retracements, which are based on 38.2% and 61.8%. In addition, Dow Theory suggests that securities retrace 1/3 to 2/3 of an advance or decline with a corrective move. Applying Speed Resistance Lines after an advance or decline provides chartists an immediate idea of where to expect support or resistance. These Speedlines can be maintained as is or repositioned as an advance or decline extends with new highs or lows. Repositioning after a higher high or lower low will widen the Speed Resistance Lines. This means potential support or resistance levels will be further away. As with all indicators and line studies, Speed Resistance Lines should be used in conjunction with other aspects of technical analysis. They are not designed as stand-alone indicators.
stock signals

Developed by Edson Gould, Speed Resistance Lines, sometimes referred to as Speedlines, are trend lines based on 1/3 and 2/3 retracements. Gould was a prominent market technician who became quite famous for his market calls in the 60s and 70s. Gould appeared on Wall Street Week a few times and was often quoted in Barron's. Speed Resistance Lines are not drawn like traditional trend lines, which are based on peaks and troughs. Instead, the first line extends from the low to the high in an uptrend or from the high to the low in a downtrend. This first Speedline sometimes cuts right through prices. Subsequent lines are then placed at 1/3 and 2/3 intervals to estimate potential support or resistance levels.

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