beathespread

The today markets are largely dominated by the machines and algorythmic trading. Big fundamental stakes are also present, and the mass psychology cannot be exluded aswell.

The Elliott waves principle was created in order to take into account the big mass psychology trading patterns. The fractal structure of the market was noted expirically way before formal scientific publications.

The classical Elliottists either continue to apply the principle as nothing changed or completely gave up. The experiments of modifing the classic works are not conclusive e.g. Neo Waves.

What you can do as a trader is to switch markets and use the principle in markets away from Forex and Stocks. Think crypto currencies. Take a look, make some counts. See if it works.

Another idea is to use the Elliott test.

The hypothesis is as follows. The market is fractal. At different levels different logics may be present. In the old times at all levels all participants were human today it is not so.

Normally the high frames are dominated by big and well thought interventions. The low frames are algorythmic.

The problem is that at high frames the human considerations of the big players are different from the constitutive ingredients fear and greed of the Elliott wave theory.

At low frames the algorythmic executions are also alien to the fear and greed paradigm. 

So you can see now the limitations of the Elliott theory in the modern markets.

What we can call Elliott test is just another hypothesis.

The idea is that the count has to be obvious. If the count is not obvious this does not mean it is complicated or hidden. It means it does not exist at all.