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Technical explanation: Older 240 Volt appliances use a three-wire power cord (Black, White, Red). The White wire is the "neutral" connection, which is tied to Ground at the service entrance panel. The Black and Red wires are opposite phases of the 240 VAC (when one goes positive, the other goes negative). The neutral wire is "in between", so measuring the voltage between the black or red wire and neutral would give you 120 VAC. The green wire is frame ground; the electrical code requires newer (since 2008) 240 VAC appliances to have a separate ground bonding connection to the frame; the neutral connection is not considered adequate protection for certain failure conditions.
Look for a screw head or terminal stud on the frame or sheet metal of the dryer labeled "Ground", "Earth", or one of the following ground symbols:
The green wire goes to this point. DO NOT connect the green wire to any of the wiring inside the dryer, unless it is a green wire attached to sheet metal or a bracket!
The black, white and red wires go to black, white and red terminals you already found.
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