Phi Ellipses

Dictionary Says

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 Says

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.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Forex Charting Software

    An analytical, ...
  2. Fibonacci Channel

    A variation of ...
  3. Pattern

    In technical ...
  4. Price Action

    The movement of ...
  5. Technical Analysis

    A method of ...
  6. Standard & Poor's - S&P

    The world's ...
  7. Risk

    The chance that ...
  8. Universe Of Securities

    A set of ...
  9. Arithmetic Mean

    A mathematical ...
  10. Fundamental Analysis

    A method of ...

Articles Of Interest

  1. Using Double Tops And Double Bottoms In Currency Trading

    Find out how to apply the two most common price reversal patterns to your trading.
  2. Advanced Fibonacci Applications

    Extensions, clusters, channels and more! Discover new ways to put the "golden ratio" to work.
  3. Fibonacci And The Golden Ratio

    Discover how this amazing ratio, revealed in countless proportions throughout nature, applies to the financial markets.
  4. High-Tech Fibonacci

    Fibonacci developed this system in the Middle Ages. See how it can provide accuracy without sacrificing readability.
  5. Make Money With The Fibonacci ABC Pattern

    We break down this indicator into simple, easy-to-understand pieces so you can profit.
  6. Taking The Magic Out Of Fibonacci Numbers

    Uncover the history and logic behind this popular trading tool.
  7. 3 Technical Tools To Improve Your Trading

    Find out how volume, the Aroon indicator and Fibonacci numbers can improve your profits.
  8. Tips For Controlling Investment Losses

    A profit/loss plan helps investors recognize mistakes and invest logically, rather than emotionally.
  9. Triple Screen Trading System - Part 4

    How can a trader use the Elder-Ray oscillator as the second screen of this system? Find out here.
  10. Triple Screen Trading System - Part 3

    Learn about market wave, the second screen in this three-part system.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center