According to the elliott theory market makes 1 small wave, followed by 1 big wave, followed by another last wave before making a reversal. This is wrong. I have tons of self-documented cases in which market makes 4 waves before actually reversing. I have been getting into lots of trouble trying to trade the trendline breakout of the 3rd wave only to find that it jumped up (or down) one last time before actually breaking out for real. I used to think I didn’t count them right, but in fact, I did. The theory was just wrong.
A couple of examples:
