Speed Line

Speed Line was developed by Edson Gould and is similar to the Gann Fan and the Fibonacci Fan. As with other Fan tools, the Speed Line is based on the trend-line marked by a user and then two additional line are drawn as 1/3 and 2/3 of the price retracement within the trend-line selected. If the trend-line is dragged from the highest high to the lowest low (marks a previous downtrend), two additional lines are drawn above the trend line and are called Resistance lines. When the trend-line is dragged from the lowest low to the highest high (marks a previous up-trend), two additional lines are drawn below the trend line and are called Support Lines.

As with the Fibonacci Fan, the Speed line is used to anticipate possible support and resistance levels. When the price moves close to the middle support or resistance line, it is considered to be inclined to change its trend. Once the middle Support or Resistance line is broken, the next vulnerable level becomes the second line.

Chart 1: NASDAQ 100 chart with Speed Line

Start using our Professional Charts
and Make Money with our System!

Sign up for a Free Trial Now!
(credit card not required)