To many, Elliott can be very frustrating and tedious and this can be a major turnoff in using it. But I noticed this morning a change in the Elliott count for BHP. I am writing this editorial a few days in advance as I will be bush in Cambodia and thus thought it prudent to write this ahead of time, should I find myself lucky enough to be so deep in the bush that there is no Internet.

So it is Monday March 8, and this is the 60 day Elliott count:

Chart 1

click here to enlarge

On Friday the count was:

Chart 2

click here to enlarge

It is not me getting it right or wrong; it is Elliott adjusting to another day's data. You can sometimes go for weeks with no change and then there is a sudden change of direction. As it is so unusual to see such a sudden change of reading I thought it worth noting.

What happens is the wave four of the five impulse wave down becomes the wave three of the new impulse five wave upward pattern.

I am using a 60-day count here and sure that if you use other period counts you will get a very different picture again. This is yet another source of frustration for would-be users.

I can't think of any technical indicator that would have given better forewarning of the happenings of the past couple of years or that will give clarity to the future. It often means that you just have to stand aside until the set-up you want - whatever indicator you are using - comes to pass.

That is the part of the discipline of trading and investing. Patience is an essential ingredient.

Enjoy the ride!

Tom Scollon
Chief Analyst
Optionetics.com.au