An investment tool used in technical analysis that is also known as the Fibonacci ellipse. The Phi Ellipse is used by traders to identify general market trends, in contrast to standard Fibonacci technical tools that attempt to determine resistance and support levels. Once three points are identified on a chart, the phi-ellipse can be drawn.


To draw an phi-ellipse, three points must first be selected: the first one is just an arbitrary point, the second is the peak that occurs after that arbitrary point (indentified by a reversal from the peak). The third point is another reversal back to the original direction of the trend. Once the ellipse is drawn, the line that bisects this ellipse is used to indicate the trend.

  1. Fibonacci Retracement

    A term used in technical analysis that refers to areas of support ...
  2. Fibonacci Numbers/Lines

    Leonardo Fibonacci was an Italian mathematician born in the 12th ...
  3. Fibonacci Clusters

    A tool used in technical analysis that combines various numbers ...
  4. Resistance (Resistance Level)

    A chart point or range that caps an increase in the level of ...
  5. Fibonacci Arc

    A charting technique consisting of three curved lines that are ...
  6. Technical Analysis

    A method of evaluating securities by analyzing statistics generated ...
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