This is a non-analytical drawing tool used to highlight specific portions of a chart you believe are significant. For example, Ellipses can highlight a group of bars signifying an upward or downward trend.
Using the Ellipse You can mark out important moments on the chart. Besides using the Ellipse separately, You can use Ellipses together with analytical tools. You can use Ellipse and then use an analysis technique that identifies something important. Combining non-analytical drawing tools with analytical tools allows you to understand how good are You in identifying important market situations before using analytical techniques in your chart.