Trading with Charts for Absolute Return

SUMMARY

The PHI-ellipse is the link between graphical trading tools and the Fibonacci ratios found in many natural phenomena: the horizon of the ocean, the track of a meteor, the parabola of a waterfall, and the arcs traced in the sky by the sun and the moon, to name only a few.

What makes the PHI-ellipse so special?

PHI-ellipses are the only trading tools that include price and time in one analytical framework. They dynamically adjust to price moves and can be applied to almost any product that consists of high volatility and sufficient trading volume. And most important, no optimization is involved.

PHI-ellipses differ from any other trading tool by circumventing price data with larger or smaller price movements. Large and small, thick and thin PHI-ellipses are possible. Important is that all PHI-ellipses are based on the Fibonacci ratios.

It took me a long time to learn how to apply PHI-ellipses in various market situations and on various asset classes. A 5-point peak/valley wave structure is required. On top of this, four different wave structures are possible that need to be handled correctly by traders. This sounds difficult, but it is not. It is just different from any other method of analysis available today.

The flexibility of the PHI-ellipse to adjust to any price move is one of the great advantages of this trading tool. The trader knows at any given time what the markets are doing. Working with the PHI-ellipse means that traders can sell high or buy low in any trending ...