Back to Glossary
General TradingF
Fibonacci Ellipse
A Fibonacci Ellipse is a technical analysis tool that draws an elliptical shape based on Fibonacci ratios around a price move. It is used to project areas of potential support and resistance by combining price and time dimensions.
Example
“The analyst overlaid a Fibonacci Ellipse on the consolidation phase and noticed price breaking out exactly where the ellipse boundary intersected with the upper price channel.”