The Basic Goodman Setup

There are three Goodman trade setups -- return, standard, and PTS (propagation trade setup). They all are varieties of the basic setup.
  1. Identify a 1-2-3 matrix
  2. That 1-2-3 becomes a 1
  3. Wait for the propagated 2, or return swing
  4. Watch for the propagated 2 to enter the return zone and intersect the 1-2-3 near the TP
  5. Find an entry point and trade for the propagated 3

Tip: Remember that in GWT the 4 swing is connected to the entire previous 1-2-3 swing.
The 1-2-3 becomes a larger 1 and the 4 a propagated 2.

In Goodman the 1-2-3
By Michael Duane Archer
Michael Duane Archer has been an active futures and FOREX trader for more than 35 years. He has worked in various advisory capacities, notably as a commodity trading advisor, registered SEC investment advisor, and branch manager for Heinold of Hawaii. He currently trades FOREX and futures and is involved in several technical analysis research projects.

Copyrighted 2016. Content published with author's permission.

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