The Ellipse study (also known as TJ's Ellipse) is a tool to anticipate when a retracement of an upswing or downswing swing will end and the original trend will resume. The Ellipse is based upon both time and price and updates as the market changes.
To apply the Ellipse study on a chart, left-click on the the icon labeled ELIPS on the Advanced Line Toolbar:
the ellipse needs a starting and an ending point to draw. click on a pivot (starting point), then another pivot (ending point), and you will see the ellipse coming down (or up) to "intercept" the market. once the ellipse has intercepted the market, it will stop updating and the market should change direction at that point.
if the shadow feature is enabled, as in the example below, the ellipse and shadow will draw to together as the chart updates and will eventually
To change the settings of the Ellipse study, right-click on Ellipse icon on the Advanced Line Toolbar and the TJ's Ellipse study properties dialogue box will appear:
Please note: There are three different lengths or Ellipse, based upon the length of the trend.
Under Time Frame you have toggle buttons that let you control the display of the Short term, Normal term, and Long term Ellipse.
The Color selection list allows you to change the color of the outer shell of the Ellipse.
The Line Width number box indicates the width of the lines used to draw the shell of the Ellipse.
The Markers toggle button, when on, leaves a mark at the starting and ending points used to draw the Ellipse.
The Shadows toggle button, when on, displays the projected path of the Ellipse.
The Center Pts toggle button, when on, displays the center point of the projected path of the Ellipse.
The Color Code Closed Ellipses toggle button, when on, changes the color of the boundary line of the Ellipse to indicate that it has "closed" (in other words, the Ellipse has intercepted the market) and will stop updating.
The Alert when Ellipse Closes toggle button, when on, allows an Alert to be activated when the Ellipse closes.
The Browse button enables you to select a sound to play when the Alert is activated.
The Play button allows you to preview the selected sound.