Phi Ellipses

AAA

DEFINITION of 'Phi Ellipses'

A Fibonacci trading tool used to aid investors in indentifying price movements. Essentially, using this model, investors attempt to buy high and sell low. One of its main uses is to indentify the underlying structures of price movements by analyzing the changing shape of the ellipse. The Phi Ellipse is normally drawn by a computer program due to its complexity.

INVESTOPEDIA EXPLAINS 'Phi Ellipses'

Generally speaking, a phi ellipses is used to detect price patterns so investors are better capable of forecasting pricing moves, and therefore, able to detect when a buy or sell is in order. These patterns found in the ellipses have practical application to many trading forums, such as Forex trading platforms.

RELATED TERMS
  1. Price Action

    The movement of a security's price. Price action is encompassed ...
  2. Technical Analysis

    A method of evaluating securities by analyzing statistics generated ...
  3. Standard & Poor's - S&P

    The world's leading index provider and the foremost source of ...
  4. Pattern

    In technical analysis, the distinctive formation created by the ...
  5. Fibonacci Channel

    A variation of the Fibonacci retracement pattern in which the ...
  6. Forex Charting Software

    An analytical, computer-based tool used to help currency traders ...
Related Articles
  1. Fibonacci And The Golden Ratio
    Active Trading

    Fibonacci And The Golden Ratio

  2. 3 Technical Tools To Improve Your Trading
    Active Trading

    3 Technical Tools To Improve Your Trading

  3. High-Tech Fibonacci
    Trading Systems & Software

    High-Tech Fibonacci

  4. Using Double Tops And Double Bottoms ...
    Forex Education

    Using Double Tops And Double Bottoms ...

comments powered by Disqus
Hot Definitions
  1. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  2. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  3. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  4. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  5. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  6. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
Trading Center