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ALGORITHM I
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==='''Step III. Building TL. Search for t.4'''=== : '''3.1. Checking for Fragmentation of the Base:''' After finding candidates for points 1, 2, and 3, a check is performed for the fragmentation of the Base. This means that there should be no extremes, co-directed with t.1, between the levels of t.1 and t.3 (Extremes that Fragment the Base, hereinafter referred to as EFB). :: '''3.1.1:''' If such extremes are present, the program checks each EFB for the presence of a confirming counter-directed extreme on the section from the last intersection of the price level of the EFB to the EFB (analogous to the search for a confirming extreme of a potential t.1 in sub-step 1.2.1). If the EFB does not have a confirming extreme, then such an EFB is no longer considered (i.e., if there are no EFBs with confirming extremes, then the check is passed). If there is at least 1 EFB with a confirming extreme, then: :: - The Base is fragmented; :: - The confirmed t.3 becomes a cancelled t.3; :: The program searches for a new t.3, for which it processes the next bar after the bar of the last cancelled t.3 according to step 2 of the algorithm. :: '''3.1.2:''' If the check is successful and no EFBs are found (including if there are no confirmed EFBs), then the program proceeds to sub-step 3.2. :'''3.2. Building and Checking TL on the 1-3 Section''' : '''Determining the Section on Which t.3' Can Be Found''' : '''Searching for t.3'.''' :The parameters of the Trend Line passing through t.1 and t.3 (hereinafter TL) are calculated. TL is checked for breakthroughs on the 1-3 section. :: '''3.2.1.''' TL is Broken :: The bar of the confirmed t.3 is checked for breaking the level of t.2. ::: '''3.2.1.1.''' If the level of t.2 is broken by the bar of the confirmed t.3, the confirmed t.3 becomes a cancelled t.3. The program searches for a new t.3. To do this, the bar that broke the level of t.2 is processed according to sub-step 3.4. ::: '''3.2.1.2.''' If the level of t.2 is not broken by the bar of the confirmed t.3, then the next bar is processed according to sub-step 3.2.3. :: '''3.2.2.''' TL is Not Broken - the bar following the bar of the confirmed t.3 is processed according to sub-step 3.3. ::'''3.2.3. Determining the Section on Which t.3' Can Be Found''' ::The analyzed bar is checked for breaking the level of the confirmed t.3. ::: '''3.2.3.1.''' If the level of the confirmed t.3 is broken, the confirmed t.3 becomes a cancelled t.3. The program searches for a new t.3. For this, the bar that broke the level of the confirmed t.3 is processed according to step 2 and further according to the algorithm. ::: '''3.2.3.2.''' If the level of t.3 is not broken, the program checks the analyzed bar for breaking the level of t.2. :::: '''3.2.3.2.1.''' If the level of t.2 is not broken, the program analyzes the next bar according to sub-step 3.2.3. :::: '''3.2.3.2.2. Searching for t.3'.''' :::: If it breaks the level of t.2, then the program looks for such a point 3' (hereinafter t.3') through which a line can be drawn from t.1 to t.3', which will not contain extra touches by the price on the section from the bar of t.1 to the bar following the bar of t.3' (inclusive), and this line should not contain extra breakthroughs (not touches) by the price on the section to the bar that broke the level of t.2 (not inclusive). ::::: '''3.2.3.2.2.A.''' If t.3' is found, then the TL is rebuilt through t.3' (i.e., TL is now the line from t.1 to t.3'), and the algorithm searches for a potential t.4, for which it processes the bar that broke the level of t.2 (but if the bar that broke the level of t.2 coincides with the bar of t.3', then the program immediately proceeds to process the next bar) according to sub-step 3.4. ::::: '''3.2.3.2.2.B.''' If the point t.3' is not found, then the confirmed t.3 becomes a cancelled t.3. The program searches for a new t.3, for which it processes each previously unprocessed bar for the cancelled t.3 according to step 2 and further according to the algorithm. : If between t.1 and the analyzed bar there are 150 or more bars, and the program has not yet moved to another step of the algorithm, this potential t.1 is discarded. :'''3.3. Checking TL on the Section After t.3.''' : The analyzed bar is checked for overcoming TL. :: '''3.3.1. TL is not overcome''' - the analyzed bar is processed according to sub-step 3.4. :: '''3.3.2. TL is overcome.''' In this case, there are 2 options: ::: '''3.3.2.1.''' If between the analyzed bar (not inclusive) and the bar of t.3 (inclusive) the level of t.2 was not reached, the program performs a search for t.3', for which it moves to sub-step 3.2.3. ::: '''3.3.2.2.''' If between the analyzed bar (not inclusive) and the bar of t.3 (inclusive) the level of t.2 was reached, the program performs a search for a new candidate for t.3. For this, the analyzed bar is processed according to step 2 and further according to the algorithm. :'''3.4: Searching for Potential or Alternative t.4''' : If the program is searching for t.4 and the analyzed bar is further from t.1 than 5 times the distance between t.1 and t.3, then this potential t.1 is discarded. : If the program is searching for an alternative t.4 and the analyzed bar is further from t.1 than 10 times the number of bars between t.1 and t.3, then the search for an alternative t.4 is terminated. : The analyzed bar is checked for being an extreme according to rule N1 (as a potential t.4). ::'''Step 3.4.1: If the Bar is not an Extreme''' :: The program checks the analyzed bar for breaking through (in this case, not touching) the TL. ::: '''Step 3.4.1.1:''' If the TL is not reached (not broken), then the program processes the next bar according to step 3.4. ::: '''Step 3.4.1.2:''' If the TL is broken, then the analyzed bar is processed similarly to step 3.3.2. ::'''Step 3.4.2: If the Bar is an Extreme''' :: This is potentially t.4, proceed to step 3.5. :'''3.5. Checking the Position of t.4''' : The program checks the position of the potential t.4 relative to the extreme of t.2. There are 3 possible scenarios: :: '''3.5.1.''' The level of the potential t.4 is closer to the level of t.1 than the level of t.2. A candidate for t.4 for the Wedge model is found. In this case: ::: '''3.5.1.0.''' The bar of the potential t.4 is checked for the presence between it and the bar of t.3 of bars containing price values :::: more distant from t.3 than the value of the potential t.4, or :::: equal to t.4. :::: This is a check for the potential absoluteness of the extreme of the potential t.4. Possible options are: ::::: '''3.5.1.0.1.''' The potential t.4 is not a potentially absolute extreme (there are bars more distant from t.3). In this case, the next bar is processed according to sub-step 3.4. ::::: '''3.5.1.0.2.''' The potential t.4 is a potentially absolute extreme. In this case checking if t.2-t.4 line (this is the Aims Line, hereinafter - AL) is crossed by the price in the section between t.2 and t.4 (hereinafter - section 2-4). There are 2 options β 3.5.1.1. and 3.5.1.2. :::::: '''3.5.1.1.''' If AL is crossed, the program checks the analyzed bar for reaching the TL. :::::::: '''3.5.1.1.1.''' If the TL is not reached - the next bar is processed according to sub-step 3.4. :::::::: '''3.5.1.1.2.''' If the TL is reached, the program searches for a new candidate in t.3/t.3'. To do this, the analyzed bar is processed according to sub-step 3.2.3 and further according to the algorithm. :::::: '''3.5.1.2.''' If there is no linecrossing, the bar t.4 is checked for reaching the TL. The following options are possible: :::::::: '''3.5.1.2.1.''' If the bar t.4 reached the TL, then the [Wedge Found] Wedge model is fixed, for which the level of intersection of the TL and the AL is calculated, after which the program searches for t.3β with the same points 1,2,3, or searches for a new t.3. To do this, the program processes the analyzed bar (in this case, the bar t.4, while reaching the TL) starting from sub-step 3.2.3. Model's Type (parameter G1) = WEDGE . :::::::: '''3.5.1.2.2.''' If the t.4 bar did not reach the TL, then the next bar after it (and when reapplying this step - the next bar after the previously analyzed bar) is analyzed for reaching the TL. At the same time, a check is made for not overcoming the distance equal to (t.1-t.3)*10. If the distance is overcome, then we return (go in a cycle) to the search for t.3. The following options are possible: :::::::::: '''3.5.1.2.2.1.''' If the analyzed bar reached the TL, then the program acts in analogy with sub-step 3.5.1.2.1. (i.e., the [Wedge Found] Wedge model is fixed and in a new branch of the algorithm the program processes the analyzed bar (in this case, the bar that reached the TL) starting from sub-step 3.2.3. :::::::::: '''3.5.1.2.2.2.''' If the TL is not reached, then the analyzed bar is checked for reaching the level of t.4. The following options are possible: :::::::::::: '''3.5.1.2.2.2.A.''' If the level of t.4 is not reached, the program analyzes the next bar for reaching the TL, options are similar to sub-steps 3.5.1.2.2.1. and 3.5.1.2.2.2. :::::::::::: '''3.5.1.2.2.2.B.''' If the level of t.4 is reached, then the program checks the analyzed bar according to sub-step 3.4. :: '''3.5.2.''' The level of the potential t.4 is further from the level of t.1 than the level of the potential t.2 - transition to step 4. :: '''3.5.3.''' The level of the potential t.4 is equal to the level of the potential t.2 - the program checks whether the bar of the considered candidate in t.4 has broken through (touched) the Trend Line (TL). ::: '''3.5.3.1. If not''' - the program searches for the next candidate for t.4. For this, the program processes the next bar according to sub-step 3.4. ::: '''3.5.3.2. If yes''' β the program searches for a new t.3, for which it analyzes the next bar according to step 2 and further according to the algorithm.
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