Speed lines are a combination of 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 . 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 . 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 ).
--> These lines shows us up until incredible granularity where the price will find support and resistance! (Just look at the graph!) Breaking a lower in a down trend in an upward move can be considered quite .
--> They are not that difficult to draw in Tradingview.
2. Now consider the and the . I highlighted the moments where one can expect a reversal (in green) or a one (red). As you can see on the daily, the (strong) downward move we are currently in could have been predicted up front.. Furthermore, they also indicated in a consistent manner the start of strong upward trends (highlighted on the y-axis as white price points (doubled your money!) and blue price points (doubled your money again!).
--> We are closing in on a new daily cross (perhaps even a golden cross), but we still have to be a little patient.
--> has supported the bullish/bearish character in each of the scenarios discussed.
--> Looking at the 4h chart however, we can see that there is some momentum in the shorter term.
3. Conclusion: For those who want to start a long position, average in on it: don't buy all at once, but you can start buying a first chunk at these prices, and then wait for the on the daily to take place. Use the Fibonnacci speed resistance lines to guide you in identifying resistance and support!
And don't forget to look at the hourly / 4-hourly chart to make some short term profit in between (you can apply the same strategy).
PS: this is by no means to be considered formal investment advice, do your own due diligence! (and preferably buy only cryptos for which you also believe in the underlying fundamentals)