Speed Lines

The Speed Lines system, sometimes called "1/3-2/3 Lines", is a set of two trend lines that divide price variations into three regions.

Calculation Method and Interpretation

Their construction and interpretation are similar to those of Fibonacci Fans. The difference lies in the fact that the slopes of these two lines are based on 33.3% and 66.6% percentages (instead of 38.2%, 50%, and 61.8% for Fibonacci Fans).

On the price chart, identify a period corresponding to a significant trend cycle and draw a line connecting the highest and lowest (or vice versa) points of that period.

The height separating these two points serves as the basis for the "Speed Lines". Draw two lines from the starting point of the previous trend with slopes such that these lines intersect the previous height at percentages of 33.3% and 66.6%.

Immediately after a major trend change, the "Speed Lines" define support and resistance lines, which represent price correction targets.

Example