Speed and Resistance Lines are used to help the technical analyst identify both support and resistance levels on the market based on current trends. These can be helpful in identifying where trends terminate and where they will continue. The application charts two lines the first based on 33% and the second based on 66% when the trend line is plotted on an existing trend.
In the example of AMTD the Speed and Resistance Line is plotted from the beginning of the trend in May and drawn to the end of the initial trend in early July. We can see how the 66% line has held the market during the retracement against the trend in July and the market has resumed the trend and made higher highs.
Speed and Resistance Lines Properties
The thickness and color of the Speed and Resistance Lines can be altered by right clicking on the Speed and Resistance Line Button.
To change the color left click on the color drop down menu to select a new color. To change the thickness of the lines left click on the arrows to the right of the thickness dialog or enter a new value in the field.