THE GOODMANWave Theory

The Goodman Library · CX2

Cover of The Goodman CODEX - Part Two, by Michael Duane Archer

The Goodman CODEX — Part Two

The Theory Letter, the Reader, the 6 & 6

Where the reference becomes a method.

The Goodman Theory Letter, the Goodman Reader, the GoodmanWorks Trading Room CODEX and the full 6 & 6 Setup manual, continuing straight on from Part One with no preface of its own.

$347

Buy this book

Or the whole Library — $2,497.

PDF · The Goodman CODEX 2026

What’s inside

  • Part 4 · The Goodman Theory Letter
  • Part 5 · The Goodman Reader
  • — the GoodmanWorks Trading Room CODEX
  • — Goldilocks
  • — Bathtub Analysis
  • — The Goldilocks PTS In Five Parts
  • Part 6 · The Goodman 6 & 6 Setup

Who it is for

Members of the trading room had this as their computer-side reference to terminology, methodology and the basic Goodman setups. It is a practical overview rather than a comprehensive theory text.

What it assumes you know

FOREX charts from five minutes to one day, pips, stops and targets, and the vocabulary of 1-2-3s, propagation, the PTS, the Jumbo, the Dagger and the 3-C Principle.

Where it sits in the ladder

A plate from the book

Schematic

Cancel, Carryover, Compensate

Whatever price misses or overshoots at the halfway point gets made up at the end of the third swing. The two dashed paths are the Under and the Over count — frequently price takes one, retraces, and then takes the other.

TP EP of the ‘1’ overshot the TP by this Cancel · Over Cancel · Under the ‘3’ exceeds the ‘1’ EP
What price misses, price makes up. · schematic, not to scale

From the book

“A Setup is propagation with a breakaway. The propagation is the Setup.”

“Charts are the direct heartbeat of the market. Indicators are second level information.”

“Goodman Wave Theory, like chess, is a sea in which a gnat may drink and an elephant may bathe.”

Buy The Goodman CODEX — Part Two · $347

The list

One letter, when there is something to say

Charlie wrote to his students. We do the same: a new plate, a chart worth looking at, a note when a book is finished. No schedule, no sequence, no selling to you every Tuesday. Leave when you like.

We keep the list ourselves. It is never sold, rented or shared.