Trading GSCS

Trading GSCS

GSCS may be traded in a number of ways, from various patterns and rules.

The following four trade formations are the easiest to spot.

1. The return. This is the easiest pattern to trade. It may be traded with or

without measurement rules. At the end of the 4-swing in a Goodman

Wave, even if the wave ultimately does not form, a sharp tradable

move is common in many markets. Trading off the return swing is 

idea for scalpers and day traders.

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Trading GSCS

2. Flat/complex rule. If the first swing is flat, you may anticipate the

second swing in a Goodman Wave being complex and trade off the

anticipated propagation of the complex swing. Guerillas may like this

pattern since it occurs often on very small time frame charts.

3. Double intersection. This can be traded without measurements, but with

measurements it is the finest single trading pattern available. Look for a

sharp move in either direction off a double intersection. Remember, it

represents equilibrium at the points. As the traders on the wrong side

unwind their positions, prices can and often do move sharply.

4. Wave propagation. Anticipating a Goodman Wave may offer a number

of trades over a period of time. It is best for day traders and position

traders. If you get in sync with a wave you may ride it for several profitable

trades. But when the music stops, don’t fight it—move on. Use

the five points of a Goodman Wave to initially map a wave.

There is much more to GSCS theory, including a notational calculus and a

charting technique. But these four trade formations are enough to keep any

trader busy for a long time. Even if you follow only a few markets at three different

trading levels, you will find multiple strategic opportunities every trading day.

I could very well stop right here. With market environments and GSCS,

you are already better armed to trade than most traders!