{"id":403,"date":"2025-07-17T18:14:35","date_gmt":"2025-07-17T18:14:35","guid":{"rendered":"https:\/\/50yeartrader.com\/blog\/seeing-goodman-setups-ohlc-vs-line-chart\/"},"modified":"2026-09-30T21:26:24","modified_gmt":"2026-09-30T21:26:24","slug":"seeing-goodman-setups-ohlc-vs-line-chart","status":"publish","type":"post","link":"https:\/\/50yeartrader.com\/blog\/seeing-goodman-setups-ohlc-vs-line-chart\/","title":{"rendered":"Seeing Goodman Setups: OHLC Bars vs. Line Charts"},"content":{"rendered":"\n

“Everything is a 1-2-3”<\/em> in Goodman Wave Theory.<\/p>\n\n\n\n

But the 1-2-3s and Setups can be difficult to see, especially when there is a lot of Time Hash and bar-to-bar overlap (“thickness”). And, once again, the time-frames do not have a perfect one-to-one correspondence with the 1-2-3s and propagations. Of course, as in life, experience is the best teacher. I do show students a few “tricks” or “shortcuts” to speed up the learning process.<\/p>\n\n\n\n

The 1-Hour Silver Chart, OHLC<\/h2>\n\n\n\n

Here is the 1-Hour Silver chart with OHLC bars.<\/p>\n\n\n\n

\"One-hour
1-Hour Silver, OHLC bars. Chart courtesy of Investing.com.<\/figcaption><\/figure>\n\n\n\n

We see a Molokai fail just after it propagated. We are OK, because that is enough to bring stop-losses to Break Even (BE), black arrow. But then comes the ugly Weak Sister.<\/p>\n\n\n\n

Then another Molokai forms, but it is extremely difficult to see, and the First Primary Swing (FPS) at this time-frame doesn’t show a 1-2-3.<\/p>\n\n\n\n

Sidebar:<\/strong> For fun I placed the Under Count for this little Setup. The Tail is only a few cents.<\/p>\n\n\n\n

The Same Chart as a Line Chart<\/h2>\n\n\n\n

Now here is the line chart:<\/p>\n\n\n\n

\"One-hour
The same 1-Hour Silver period as a line chart. Chart courtesy of Investing.com.<\/figcaption><\/figure>\n\n\n\n

Clear as a bell. The problem with line charts is that doing 3-C counts (important!) becomes harder, and quite a bit of useful information is deleted. But it is sort of like an X-ray view, so if you are learning Goodman and having problems visualizing the Setups, try some line charts.<\/p>\n\n\n\n

This post is educational commentary. It is not investment advice. Trading futures and FX involves substantial risk of loss.<\/em><\/p>\n\n\n\n

Good Trading!<\/p>\n\n\n\n

Michael Duane Archer<\/p>\n\n\n\n

Related Reading<\/h2>\n\n\n\n