Speed resistance lines are a tool in the technical analysis used for determining potential areas of support and resistance in the market. Also known as speed lines, these are trendlines based on 1/3 and 2/3 retracements.
KEY TAKEAWAYS
- Speed resistance lines, or speed lines, are a series of three trendlines used to indicate support and resistance levels.
- The first speed line connects a recent high and low point in the asset’s price.
- The second and third-speed lines are drawn at 1/3 and 2/3 intervals, respectively.
