Goodman Cycle Count System

Goodman Cycle Count System
I offer this section as an extra for experts, for those who want to do some independent
exploration and research. It is a Goodman system for time, in contrast
to GSCS, which is for price. Either Charlie didn’t have it fully developed or he
simply didn’t share the details with me. It took me 20 years after his passing (in
1984) to reconstruct it from a few charts he left that used it.
I use GSCS primarily and the Goodman Cycle Count System (GCCS) as
only a check or overlay to confirm GSCS.
Charlie had a counting system for cycles (time) as well as prices. He never
explained it to me in depth, but I know he used it. The time points would be
overlaid on his price charts, I assume as a confirming type of signal.
Just as GSCS calculates price targets, GCCS calculates time targets. The
union of these two targets is called a landing area.
Although I have hundreds of Charlie’s price count charts, I was left only a
half-dozen or so examples of the cycle count system. Through the years since
his passing, I have taken those out on occasion and spent a few minutes looking
at them, but until recently, I had never figured out the key to the cycle/time
count system.
A few months ago I tried a new tack. It worked! As is often the case after
figuring something out, I wondered, “How did I miss this before?” In the case
of the cycle count, I had tried to make it more complex and less transparent
than it was and had misconstrued Charlie’s use of the word cycle. In this case, it
is actually the same as a swing. After I grasped that concept, it was a matter of
trying a few different measurement paradigms to figure out what Charlie was
calculating to and from.
I’m not done researching GCCS—I plan to run an in-depth computer
study of it soon—but I’m confident I have the basic key to it right now and so
I am sharing it with you via the example in Figure 5.29. I hope you find this example
interesting.
GCCS is identical to GSCS, except that instead of using the vertical
(price) length of the swing components to determine a price objective, you use
the horizontal (time) distance from trough to trough and from peak to peak of
swing components to achieve a time objective.
The underlying logic is somewhat similar to GSCS. In GSCS the values of
swing component 1 and swing component 2 determine the price objective for
swing component 3. In GCCS, the trough-to-trough or peak-to-peak measurement
of swing component 1 and the peak-to-peak or trough-to-trough measurement
of swing component 2 determine the time objective for swing component 3.
94 DEVELOPING A TRADING CODEX

Goodman Cycle Count System

This is an important distinction between GSCS and GCCS: You need an
extra (prior) swing component (called 0 swing) to generate and/or calculate a
GCCS time count.
Figure 5.29 displays the basic GCCS paradigm. If you are familiar with
GSCS, perhaps you can work out the mapping to other Goodman ordinal and
cardinal principles. If not, stay tuned!
For GCCS, measurements are taken from the peak of a swing component
to the point horizontal with it on the previous swing component. The next
measurement is taken from the most current point in the next swing component
back horizontal to the first swing component. Just as in GSCS, the most
current swing is in process, so measurements change with time and price.
If the first measurement is a primary swing and the next one is a secondary
swing (as in Figure 5.29), the secondary swing cycle measurement
should be one-half the primary swing measurement—in this instance, 6.
Here, the secondary measurement is 7. Calculation is as follows: The next
primary swing will fall (in time) ± 1 from the ideal measurement point of 6 on
the secondary swing measurement.
I’ve also calculated the GSCS price count for this wave. The union of the
two boxes is the calculated landing area for the integrated price (GSCS) and
time (GCCS) measurements.
Again, as the most current swing component builds, both calculations
can change and, thus, the landing area.
I find this quite exciting—a technical analysis tool hidden for so many
years. I’m currently working on GCCS intersection, carryover, and cancellation

aspects; these appear to be slightly different from their GSCS concepts. There
are also some special formations worth noting, and ordinal versus cardinal
principles, as well.
Don’t work with GCCS until you’ve mastered both the ordinal and cardinal
rules of GSCS. I find GCCS works best as a check on GSCS and not as a
trading method in and of itself. But if you have a strong opinion in favor of trading
cycles, it may well reward further exploration. As new research on GCCS is
complete it will be published on www.fxpraxis.com, so please check for updates.

0000