The Speed Resistance Fan displays three trendlines, sometimes referred to as 1/3-2/3 lines. These trendlines divide a price move into three equal sections.
Similar to a Fibonacci Fan, the slope of each line is used to measure trend corrections and the rate at which a trendline is ascending or descending.
A Speed Resistance Fan is created by drawing a line from a major low to a major high. These reference points divide a time-price range into thirds. The first reference point defines the starting-limit-price-and-time and is the point from which the fan extends. The time-price range is determined relative to a second point that defines the ending-limit-price-and-time. The angles of the fan show 33.33% and 66.66% of the time-price range, respectively.
Prices are likely to find support above the 2/3 line. When prices fall below the 2/3 line, they are expected to drop quickly to the 1/3 line, where they normally find support again.
Speed Resistance Lines can also be drawn as an arc.
When the Fan is drawn, two "grab bars" are placed where the trend line starts and ends. The trend line is the top, centermost line. If the Fan is rotated 180 degrees the trend line will change. To change the position of the trend line, click the object to select it, position the cursor on either of the grab bars, and drag it to the desired location.
To move the Speed Resistance Fan, click on either of the two lines that are NOT the trend line -they will then display highlighted as shown above. You can now drag the highlighted line to move the Fan to a new position on the chart.
You can change many of the Speed Resistance Fan properties. To access properties, right click on the tool and select Object Properties.
|
Property |
Description |
|
Coordinates |
Select Prices and Dates to set the 2 endpoints. |
|
Color |
Click the Color box to choose a color from the drop-down list. Use same color for all if desired. |
|
Width |
Choose a width for the line, between 1 - 10. |
Click Apply. Click OK.