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Speed Resistance Lines
Speed Resistance Lines are a figure for which it is difficult to define the general rules by quantity of maxima, minima, to the purposes of movement, etc. Therefore, it is usually allocated separately.
Speed Resistance Lines is the consecutive whiten trend movement, which corrections pass under different corners from an index point of trend movements.
At construction of Speed Resistance Lines, the following rule is used:
1. The minimum of a trend and the reached maximum of a trend are the reference point.
2. The line, which shares on pieces 2/3, 1/2 and 1 /3, is drawn. Speed Resistance Lines are drawn through these points. Break of line's thirds is considered a strong signal on sale.
Usually after break the first line as supports, there is a fast achievement of a following line, and the first becomes the resistance of movement. When the second line is broken, it also becomes resistance, and support becomes the third.
Thus, the prices for some time become "locked" between two lines.
Usually it is considered, that break of the third beam is a signal on purchase at a turn of an ascending trend or a signal on sale at a turn of a descending trend.
Example of "Speed Resistance Lines"
The situation with a descending trend will be mirror-like.