He bases his formula on the consideration that sometimes there are price levels on which one can expect:

- an abrupt reversal

- a strong acceleration in the direction of the trend

Buying the start of a rally means placing your buy value beyond this test level, with the test level stopping.

You will therefore have a signal with the advantage of having a low risk, close stop, against a high prospect of gain.

The ratio of limited loss / high prospect of profit is part of the technical background of the low-risk trader, and for this reason it is part of the proposed operation.

In the graphs they are represented by a blue band and you can see how often they behave as support or resistance projecting them from previous minimums or maximums while the vertical bars inside the MOBs represent the ideal time interval within which to expect the achievement.

Elliott Waves is one of GET's leading studios. The simplified Elliott Wave theory states that you will have a sequence of 5 waves in one direction and then a new sequence of 5 waves in the opposite direction, without getting too lost in complicated and chained counts. The aim is therefore to identify the bullish or bearish impulse of each single movement and then calculate the targets of the various waves. The main count is the circled one, represented in the comments with a parenthesis (1), (2), (3), etc. , ii, iii ...

It aims to indicate the maximum retracements within which the previous trend is not affected.

To do this, it projects an ellipsoidal area, hence the name ellipse, within which prices could trigger a reaction.

Once you have drawn the two turning points from which you want to start considering a retracement, the ellipse projects a colored area and its shadow.

As prices evolve and time passes, ellipse brings the colored area closer to its shadow, until it overlaps it.

At that point, if prices reach the area, a reaction is likely to be expected.

There are three: yellow, blue and neutral which represent respectively the 38%, 50%, 62% Fibonacci retracements, but with the addition of the time factor !!!

Pivots are an indicator that show the market trend turning points. These pivots are labeled Primary (P), Major (J), Intermediate (I), or Minor (M), depending on how long a movement extends, and are useful as levels from which to calculate MOB or ellipse. Sometimes different colored pivots called "Smart Pivots" are labeled. These are projected as accurately as possible but there is no guarantee that they will not change and therefore can be considered as temporary joints.

The seasonals function represents the fractal calculated on historical data, the green and red color differentiates the fractal in the positive (normal) and negative (inverted) market phases. The program "centers" the fractal with the last bars by moving it to the right or left to identify the best future projection. This is the technique we use to extrapolate the cyclical rhythm of the markets as I believe that the old theory of cycles studied on the texts is now unreliable.

The reversal of the bias indicates a potential trend change. When the Bias Reversal is indicated at the top of the chart, it indicates some degree of change in the trend and the market should go down. The opposite happens when the Bias Reversal is positioned at the bottom of the graph.