Speed resistance lines used in fxTrade create a fan similar to the Fibonacci fan. However, rather than using Fibonacci numbers, the fan uses calculations by thirds. Many traders watch for a move below the two-thirds level as a signal of continued retracement toward the one-third level.
Click the minimum and maximum points of an identifiable trend to create the reference line. Two other lines are drawn fanning out from this line at angles of 33.33% and 66.66%. These lines represent lines of possible price support on retracement. They may give insight not only to the degree of retracement but also the rate of retracement (hence the term "speed lines").
This is for general information purposes only - Examples shown are for illustrative purposes and may not reflect current prices from OANDA. It is not investment advice or an inducement to trade. Past history is not an indication of future performance.
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