Speed Resistance Fans are tools used technical analysis to identify support and resistance levels of a trend and the price level a trend correction may rise or fall. A Speed Resistance Fan consists of a trend line on which speed resistance lines are drawn above (which represent time) and below (which represent price). These lines are drawn based on time/price percentages of the distance between the beginning and end of the trend line. The most common speed line percentages used by analysts are one-third and two-thirds. Fibonacci Ratios are frequently used.
Speed lines are a combination of trend line and percentage retracement analysis. Speed resistance lines not only help to measure trend corrections (percentage retracement) but also measure the speed of a trend.
Speed Resistance Fan lines can also be viewed as support or resistance lines. In an uptrend, price usually stays above the higher speed line. If this line is penetrated, prices generally fall to the lower speed line, which in many cases becomes the support level. However, if prices break below the higher speed line, fall to the lower speed line, and then begin to rise, the lower speed line becomes the resistance level. In a downtrend, the breaking of a lower speedline indicates a possible rise or rally to a higher line. If a breakout occurs above that line, the rally may continue to the top of the prior trend (or the underlying trend line).
Identify mo ang start ng trend. Its up to you kung sa body or wick ka ng candle magsisimula.
Ang low is ang starting point ng trend ang high naman depende sayo kung alin ang e coconsider mo na high kasi depende sa pag view mo ng trend or kung saang level ka ng trend tumitingin.
So ang idea is hindi dumiderecho angat ang stock kahit pa uptrend ito. May mga levels ng retracement. Buy ka sa level kung saan nagretrace as long as respected ang support at sell ka sa resistance if hirap e break ito.
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