Speed Resistance Fan

The Speed Resistance Fan display 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 should 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 may also be drawn as an arc.

 

Properties: Double-click on the tool to display its properties.

 

 

Add Speed Resistance Fan to a chart

 

  1. From the Chart Tools toolbar, click on the Speed Resistance Fan tool.
     

  2. Holding the left-mouse button, click on the chart where you want to start the control line, then drag the mouse to where you want to end the control line and release the mouse button.
    Result    : The tool is drawn.
     

  3. You may continue to add this tool to the chart by repeating Steps 1-2. To de-select the tool, click on the Selection arrow from the Chart Tools toolbar , or hit the ESC key.

 

Change the position of the control line

 

  1. When the tool is drawn, a "grab bar" is placed where the control line starts. To change the position of the control line, click on the object to select it.
     

  2. Position the cursor on the grab bar, and drag it to the desired location by holding down your left-mouse button.
     

  3. Once done, de-select the tool by clicking anywhere on the chart.