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Chart Lesson: 6

Speedlines
Speed resistance lines, or speedlines, are used to determine support and resistance in a fashion other than retracements, and not contingent on the short term trend. To calculate, divide the "price distance" from a major high to major low by 3. In this case, that's $8.60/3. Add $2.86 to the low (point 1). The line from A to 1 is the 1/3 speedline.


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