Editing ALGORITHM II (section)

===''' Step III. Confirmation of Point 4. Searching for Alternative t.5 and t.5" '''===
The program checks whether the bar of potential t.5 has reached the level of t.4. Two scenarios are possible:
:'''3.1.''' The Bar of Potential t.5 Has Reached t.4.
:In this case:
::The model is built through absolute t.5.
::The t.5 bar confirms t.4. The presence of a bar confirming t.4 indicates that:
::Point 4 is confirmed,
::Point 5 is confirmed.
::The program proceeds to sub-step 3.3 (since there is already possible to display the model through t.5 on the chart).
:'''3.2.''' The Bar of Potential t.5 Has Not Reached t.4.  
:In this case, the program checks the next bar for reaching the level of t.4. The following options are possible:
::'''3.2.1. The Considered Bar Reaches the Level of Potential t.4. 
::In this case:
:::The model is built through absolute t.5.
:::The considered bar confirms t.4. The presence of a bar confirming t.4 indicates that:
:::Point 4 is confirmed,
:::Point 5 is confirmed.
::The program proceeds to sub-step 3.3.ext, but first goes through sub-step 3.3.
::'''3.2.2.''' The Considered Bar Does Not Reach the Level of t.4.
::In this case the program checks the next bar for overcoming the level of potential t.5. Two scenarios are possible:
:::'''3.2.2.1.''' If the t.5 level is overcome, the analyzed bar is considered as a new potential t.5. The program processes this bar according to step 2.
:::'''3.2.2.2.''' If the t.5 level is not overcome, the analyzed bar is checked for reaching the level of t.4 according to sub-step 3.2.
::In parallel (i.e., an additional branch is created), the program proceeds to sub-step 3.3 (since there is already an option to display the model through t.5 on the chart). The model in this branch receives a "draw_flag" label.
:'''3.3.''' Construction of the Trend Line (TL).  
:A Trend Line (TL) is constructed from t.3 to t.5. Each bar between t.3 and t.5 is checked for breaking the TL. Two scenarios are possible:
::'''3.3.1.'''The Price Crosses the TL. 
::In this case, the TL through t.3 is not constructed. The program searches for a candidate for point 3' (hereafter - t.3'). T.3' is selected in such a way that the TL' (constructed from t.3' to t.5) is not crossed by the price in the 3-5 segment. Rule No.1 for t.3' is not applied. T.3' cannot belong to the same bar as t.4. Two scenarios are possible:
:::'''3.3.1.1.''' T.3' is found, this model is classified as built through t.3'. The program proceeds to step 4, or to sub-step 3.3.extended if coming from 3.2.
:::'''3.3.1.2.''' T.3' is not found. In this case, the program searches for new potential t.5 and t.4 according to step 2.
::'''3.3.2.''' The Price Does Not Break the TL. 
::In this case, this model is classified as built through t.3 (absolute extreme). The program proceeds to step 4, or to sub-step 3.3.ext. if current algorithm line is coming from 3.2.


::'''3.3.ext. Additional Trend Line Construction Through t.5".'''
::If:
::*The t.5 bar does not exceed the range of t.4;
::*At the time of model calculation, the level of t.4 is confirmed, then this model is checked for the possibility of constructing an additional Trend Line (TL) through t.5". Note: If t.4 is not confirmed, this model should be recalculated upon the appearance of a bar that confirms it's t.4.

::''' Definition: Point 5" '''
::Point 5" can lie in the segment between t.5 and the point confirming t.4. On this segment, a point is searched that meets the following requirements:

::''' Rule for Selecting Point 5" High '''
::To the left of the bar containing t.5", the nearest high should be above the level of t.5.
::To the right of t.5", at least one nearest high should be below or equal to t.5. ::If the nearest high is equal to the level of t.5, then the next high should again be below or equal to the level of t.5, until at least one bar is strictly below the level of t.5.

::''' Rule for Selecting Point 5" Low '''
::To the left of the bar containing t.5", the nearest low should be below the level of the extreme.
::To the right of t.5", at least one nearest low should be above or equal to t.5. If the nearest low is equal to the level of t.5, then the next low should again be above or equal to the level of t.5, until at least one bar is strictly above the level of t.5.

::''' Special Cases for Point 5" '''
::Point 5" may belong to a bar that has broken the level of t.4 (but only the first of such bars). If the bar of potential t.5" breaks the level of calculated t.6 from t.5, then it is impossible to construct a TL through t.5" for this model (this model does not contain such a point).

:::'''3.3.ext.1.''' Additional TL Calculation 
:::If a bar is found that fits the rule for selecting 5", an additional TL is calculated for the potential t.5" (hereafter TL"). This line is checked for the absence of breaks in the segment from t.3/3'' to potential t.5".

:::::'''3.3ext.1.a.''' If there is an intersection, the program moves to check the next bar as a potential t.5".

:::::'''3.3ext.1.b.''' If there is no intersection, the found bar is compared with the previous candidate for t.5" (if there was one in the previous iteration of the cycle). If the considered bar is closer to the level of t.4 than the candidate for t.5", then the considered bar becomes the new candidate for t.5".
:::The check of bars continues in a cycle until a bar confirming t.4 is reached. If a candidate for t.5 is found as a result of the check, the program moves to sub-step 3.3ext.1.1; otherwise, it moves to step 4.
::::'''3.3ext.1.1.''' If the analyzed model is built through t.3', a candidate for t.3" is sought in the segment t.3-t.3', through which such a line to t.5" can be built that will not have price intersections in the segment t.3-t.3".
:::::'''3.3ext.1.1.1.''' If a candidate for t.3" is found, where there are no intersections, a check is made for the intersection of TL" by the bar following t.5".
::::::'''3.3.ext.1.1.1.A.''' If there are intersections, t.5" is declared canceled, and the next one is sought according to sub-step 3.3.ext.
::::::'''3.3.ext.1.1.1.B.''' Otherwise, the program moves to step 13.2.
:::::'''3.3.ext.1.1.2.''' If a suitable t.3" is not found, a re-search for a candidate for t.5" is carried out according to sub-steps 3.3.ext., but in this case, if a candidate for t.5" was found, it becomes a canceled candidate for t.5". The new candidate must already be further from t.4 than the previously discarded ones.
::::'''3.3ext.1.2.''' If the analyzed model is built through t.3, a check is made for the intersection of TL'' by the bar following t.5".
:::::'''3.3ext.1.2.A.''' If there are intersections, t.5" is declared as canceled t.5', and the next one is sought according to sub-step 3.3.ext.
:::::'''3.3ext.1.2.B.''' If there are no intersections, the algorithm moves to step 13.2.
:::'''3.3.ext.2.''' TL'' is checked for price intersections in the segment between t.5 (inclusive) and potential t.5" (hereafter segment 5-5").
::::'''3.3.ext.2.1.''' If there is an intersection, then this 5" is filtered out. A re-search for a candidate for t.5" is carried out according to sub-steps 3.3.ext., but in this case, the new candidate must already be further from t.4 (in terms of time) than the previously discarded ones.
::::'''3.3.ext.2.2.''' If there are no intersections of TL" in the segment 5-5", then t.5" is found.
::::In this case, the report displays: EAM5" EAM5"
::::The program moves to step 4.
::::'''3.3.ext.2.3.''' If t.5" is not found, the program moves to step 4.