In technical analysis, what do speed lines usually indicate?

Speed lines are a tool used in technical analysis to indicate potential zones of support and resistance within price movements. They are derived from applying a specific angle to a significant price movement, creating lines that can guide traders in identifying where price may reverse or face obstacles. These lines are often drawn from a substantial high or low and extend in a way that reflects the speed of the prior price movement. As the price interacts with these lines, they can serve as critical levels where traders anticipate buying or selling interest may emerge, thus suggesting potential areas of support or resistance.

The other options, while relevant to different aspects of technical analysis, do not accurately define the purpose of speed lines. Future earnings potential pertains more to fundamental analysis, momentum relates to the strength and direction of price trends rather than specific price barriers, and while patterns indicating market volatility can involve various tools and indicators, they do not specifically point to the function of speed lines in marking support and resistance levels.