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Overview
Speed Resistance Lines ("SRL"), sometimes called 1/3-2/3 lines, are a series of trendlines
that divide a price move into three equal sections. They are similar in construction and
interpretation to Fibonacci Fan Lines.
Interpretation
Speed Resistance Lines display three trendlines. The slope of each line defines a
different rate at which pricing expectations are changing.
Prices should find support above the 2/3 line. When prices do fall below the 2/3 line,
they should quickly drop to the 1/3 line where they should then again find support.
The above excerpt courtesy of Marketscreen.com and "Technical Analysis From A to Z" by Steven B. Achelis which was the inspiration for this website.
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