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Charles B. Goodman was a highly successful commodities trader. He studied trading charts and market behaviors from the late 1940s to the early 1970s. Based on the results, he created a new trading principle, which he named “My System”. However, this system was never published. Forex Swing or Goodman’s Swing Count System is a forex trade prediction system based on Goodman’s principles.
Goodman Swing Forex: Make Trades that Generate Profits
Goodman was a very conservative trader and this is reflected in his principles. All his life he traded only once or twice a month, but he got maximum profits each time. He believed that one should work on avoiding a losing trade rather than looking for a winning one. This is why he entered into only those trades that had the highest chance of profits and lowest chance of loss. Goodman was a true leader in the trading field. He conquered every trading floor he stepped on with his principles.
The concept at the core of Goodman’s Swing Count System is known to a majority of the traders. The 50% Retracing Rule is used in most forex prediction tools. The rule is fairly simple in itself. It states that whenever the reversal of any trend line (going uniformly in any direction) will take place, the equilibrium point between sellers and buyers will rest at 50% of the initial plunge. It also states that the final resurgence in the initial direction will long enough to be roughly equal to the length of the initial trend surge.
Forex Swing Study and its Feasibility
The Goodman’s Swing Count System worked very well for Goodman. The question, however, is whether using it in forex trade will guarantee profit. The answer to this is No. By studying forex swings, traders may sometimes hit the jackpot but, most often, it does not works that way. The system will work only for a conservative trader. It requires a high degree of vigilance and surveillance prowess. Using this system, a trader will have to wait for a trade that has the highest probability of being a success. This system is definitely of no use to a day trader.
This principle should not be applied in highly volatile market conditions. As Goodman once commented:
"You Can Figure the Markets, but You Can’t Figure the Human Race"