Phi-ellipse

[fabrizio]

Gart, Alex or any wiz on the forum

I'm getting acquainted with the PHI Ellipse, as a countertrend indicator.

Without getting too much in detail, since the Ellipse study has shown his robust efficence, someone belive that would be possible to create e a PHI - ELLIPSE study similar to the Ellipse ?

I'm get into this Fib pattern and as much as i discover the basics and the final aim, I found it more and more interesting ; in my personal opinion- could be worth of some thoughts of Test and further implementation in AGET. Isn't it?

Any comments or idea about what above?

Thanks

PS : I do not think that an efs would be enough, or I'm wrong?

[pillagingpiper]

fabrizio,
The ellipse tool, as used in Advanced GET, is primarily a TREND FOLLOWING tool. It is used to find the right time and price for the original trend to CONTINUE. We have not really used it at all to find counter trending opportunities. That is more the function of the MOB in AGET. Do you have some specific examples you were looking at for opportunities for a couter trend placement of the ellipse?

piper

[fabrizio]

Pilliganpiper

Sorry for the delay in answer you but I saw just now your reply.

I want to precisely detail my words , so give to me couple of days to write down what I meant.

Cordially

[fabrizio]

The Phi Ellipse is a tool identifying underliyng structure of price moves

Nothing to do with the Original Proprietary ELLIPSE study developed by Tom Joseph that AFAIK could be considered i"the possible maximum retrace that a price can make within its original trend".

To make a long story short "PHI ellipses are related to the Fib ratio PHI in a way that is similar to the summation series and corrections and extensions ..."

Quoting R. Fisher "PHI Ellipses are the perfect geometrical tools when Fib ratio PHI requires coping with noise and analyzing price moves as entities over time, without having to focus too much on every individual intermediate minor peak or valley that shows up between the starting point and the ending point of the price pattern"

In few words a PHI ellipse circumvent a range of prices or better a simple 3 swing pattern with a particular shape ( PHI ratio) and Slope (price impulse)

Once PHI ELLIPSE circumvent an ABC price movement and C gets to the end of the geometrical figure , normally a reversal movement will show up. No action can be taken until the final point is met ( price exaustion).

Indeed many Ellipses can overlap each others , and different Fib ratios produces differents Ellipse shapes yet function of their slope.

In a very "simplistic" way a description of PHI Ellipse.


Refer to R. Fisher " The new Fibonacci Trader"

Cordially