yes, sdcaalan, that's the way they usually progress. But we are also dealing with a larger matrix pattern that still suggests 1.07 or a bit above on a final target.
Ok sdcaalan, let's look at the matrix formation on the daily chart here. From here, you can see how the first leg up was a sharp pop. Basic thin leg formation. Then a retrace. But here's the kicker...the retrace went beyond the 50% fib by 155 pips. Goodman wave theory says that overshoot must be made up somewhere. Basically, we have to figure out what the normal ideal target would be and then add 155 pips to it and then subtract 155 pips from it to give us what Goodman called a "bracket" target range.
So we needed to expect it to be made up in this last leg. Notice that this leg is decidedly fat...lots of choppy back and forth action going on.
If we measure from the bottom of the retrace, we would have expected 1.0575 to 1.0580 to be the top of the run. But we have to factor in that additional 155 pips of overshoot from the retrace. So, going from the expected top of 1.0575, we add 155 pips there and we get an expected target around 1.0730 which just happens to be right near the top of the weekly bollinger band.
Goodman adjustments can be a pain to work with. It's probably the only real setback I've found since using Goodman theory. But overall it works very well.
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