Fibonacci Ellipse
This recognizes the underlying structure of cost moving. When a cost pattern alters, shape of ellipse handling the respective market cost pattern also changes. We can look for short and long ellipses, thin and fat ellipses and the ellipses that have a flat or steep angle. The power of this ellipse is no matter how several waves or the sub waves we search in a cost pattern, we get a solid overall image of the total cost pattern whenever it can be avoided by the Fibonacci ellipse. It is started from the beginning of wave A in three wave designs and the width is selected so that the starting and the end of wave B is fixed between the extreme points of the ellipse minor axis. This ellipse is also called as phi ellipse which is a less popular member of a general category of the Fibonacci studies in the technical analysis. An ellipse can be made when three different points on the chart are called as arbitrary starting point, initial peak prior to the reverse in cost levels and the second point that represents a second reversing back towards the way of the whole trend.