Diagram Congestion Phase

Diagram   Congestion Phase

I  mention  Nofri’s  work  also  because  Charlie  was  especially  taken  by  its  simplicity and because it can work well in conjunction with GCSC. The idea of melding GCSCwith  a  congestion  phase  approach  ought  to  produce  a method  of  finding  those  high percentage  ‘ducks’  that  the  Belgian  Dentist  so  much loves!  Charlie  also  felt  that Had ady’s  work  on  Contrary  Opinion  was  a  natural  ‘fit’  especially  since  the  GCSC support and resistance points seldom lie where anyone else thinks they should.]Still, in the end, it was left for Charles B. Goodman, the great grain trader from Eads, Colorado  to  extract  all  the  logical  consequences  from  THE  RULE  and  transform  it into a robust, almost geometrically precise system.

The  logic  of  THE  RULE  is  quite  simple.  At  a  50%  retracement,  both  buyers  and sellers  of  the  previous  trend  (Up  or Down)  are ceteris  paribus‘ in  balance’.  Half  of

each holds profits and half of each holds losses.

Diagram Congestion Phase