Things are contrary to conventional wave theory

If you trade for a long enough time, you get the feeling that the market is not on the right track. The theory says that the trend always occurs in 5 waves but you can see that the trends can have 5 waves or only 3 waves.

The market has always been impactful and evolving, an era where the Elliott theory works is probably going to be different from ours now. You try to deduce that, Elliott's theory is built on the theory that humans tend to repeat their behavior, which is reflected in the repetition of the model of wavelengths. But now, financial markets have more computer interference, believe they will not work according to the rules that Elliott used to build as before.

Some tips for using Elliott waves
  1. Elliott Wave Theory should be seen as part of the system instead of an independent trading system.
  2. For accurate wave counting, you should support multiple timeframes.
  3. Always keep an eye on market cycles over time.
  4. Remember, the market can be completely manipulated.
  5. Don't impose Elliott Wave usage, you need flexibility.
A good example shows us on the SPX $ chart (chart monthly), where the market peaked in 2000 and 2007. If you use the classic Elliott Wave theory since 1930, you'll see. The market has formed 5 waves since 2007, making you think that the market will have a downtrend to form 3 recovery waves and another 5 waves to push the downtrend around 200-300 points.

But instead of the market falling again, the market bounced back from the 2009 bottom, which is not true of what we read about the wave theory.

In conclusion, the choice of the trading method with wave theory independently is inadequate, and the fact that traders trade on the 5-3 wave pattern is a thing of the past, traders need to have a mindset. New is like what the world has changed today.

To be able to trade Elliott Wave effectively, you should combine it with another indicator, and use the new wave pattern, which will be discussed in the next section.