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.
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.
just a means of S/R, The pitch fork is gets more complicated. you have to identify 3 pivot points then draw a line from the firat point so it bisects the 2to3 line you then draw parallel lines from points 2 and three, parallel to mid line.
Both are sometimes uncanny with their relationship to price movement. But like bear flags, H&S and other patterns, they are good for trading, a confirmer but not a decision factor. Gann and fibonacci would be a better place to spend your time. Reading, studying, and applying TA is a long path no matter which one you take. Speed lines and pitchforks are in a number of charting programs and written up in many books and articles. Which program do you use? Instant experts will jump up after reading one book. If it was easy everyone could do it.
Don't fall into the Edwards/McGee hole, you will begin to see a triangles, flags, and H&S on every street corner. |
