Fib Speed Resistance Fan
Application
Speed Resistance Fans are tools used technical analysis to identify support and resistance levels of a trend and the price level a trend correction may rise or fall. A Speed Resistance Fan consists of a trend line on which speed resistance lines are drawn above (which represents time) and below (which represents price). These lines are drawn based on time/price percentages of the distance between the beginning and the end of the trend line. The most common speed line percentages used by analysts are one-third and two-thirds. Fibonacci Ratios are frequently used.
Speed lines are a combination of trend line and percentage retracement analysis. Speed resistance lines not only help to measure trend corrections (percentage retracement) but also measure the speed of a trend.
Speed Resistance Fan lines can also be viewed as support or resistance lines. In an uptrend, price usually stays above the higher speed line. If this line is penetrated, prices generally fall to the lower speed line, which in many cases becomes the support level. However, if prices break below the higher speed line, fall to the lower speed line, and then begin to rise, the lower speed line becomes the resistance level. In a downtrend, the breaking of a lower speedline indicates a possible rise or rally to a higher line. If a breakout occurs above that line, the rally may continue to the top of the prior trend (or the underlying trend line).
Style
In the Style property dialog, it is possible to change the appearance and configuration of a Fib Speed Resistance Fan and save these custom changes as template if needed:
Price/Time Levels
Checkboxes on the left toggle the visibility of the drawing lines. With the switches beside you can also set the color and opacity for each line.
Also, it is possible to enter a custom value for each line's placement within the Fan.
Labels
Can toggle the visibility of the left, right, top and bottom labels with levels' values.
Use one color
Use this drop-down to select one color for all the lines and the background.
Background
Toggles the visibility and opacity for the background fill between the levels.
Grid
Can toggle the visibility of the level grid. Toggles beside adjust its color, thickness and the line style.
Reverse
Reverses the direction of the Fib Speed Resistance Fan.
Coordinates
In the Coordinates properties dialog, you can set precisely the position of the Fib Speed Resistance Fan by setting it's initial points' position on the price scale (by setting the price) and the time scale (by setting the bar number):
Price 1
Allows for the precise placement of the fib speed resistance fan's first point (Price 1) using a bar number and price.
Price 2
Allows for the precise placement of the fib speed resistance fan's second point (Price 2) using a bar number and price.
Visibility
In the Visibility properties, dialog you can toggle displaying of the Fib Speed Resistance Fan on charts of different timeframes.
Allows to configure a drawing to be displayed on particular intraday and daily timeframes on chart. For any timeframe you can select either to show it, or to hide and save these custom changes as template if needed:
