Editing ALGORITHM II (section)

====Examination of Extremes====
On the preceding trend, extremes are checked sequentially from right to left (i.e., into the past) from t.3 (or from another analyzed bar in repeated applications of this step) according to the N1 bar rule (as a candidate for t.2). Each found candidate for t.2 is checked for the presence of a confirming extreme (which also serves as t.1) according to the following algorithm:

::'''4.1.0.''' An extreme candidate for t.2 is found.
::'''4.1.1.''' The point of the last intersection <ref>High or low of a bar, repeating or crossing high or low of t.2 bar – is an intersection</ref> of the candidate's level with the price is found. In this case, the program looks for the absolute maximum (if t.2 is a minimum, i.e., t.2 is low) or the absolute minimum (if t.2 is a maximum, i.e., t.2 is high) in the segment from the last intersection of the t.2 level with the price to t.2.
:::'''4.1.1.1.''' Maximum/minimum not found. In this case, the program discards this candidate for t.2.
:::'''4.1.1.2.''' Maximum/minimum found. In this case, the potential t.2 is confirmed.
:::'''4.1.2.''' The program reaches the starting point of the chart.
:::'''4.1.3.''' The check reaches the boundary of the Depth of Search for t.1 <ref>"Search depth t.1 for EAM models" is set in the Calculation Parameters. It is calculated in bars from the bar of the considered potential t.2. By default, this value is 50 bars.</ref> for the model and none of the above events (4.1.1. or 4.1.2.) occurred.

::'''4.2.''' The search for Foundation Blocks (i.e., points 1 and 2, a.k.a FB) continues until one of the events in steps 4.2.A, 4.2.B or 4.2.C. occurs.
:::'''4.2.A. The check reaches the bar containing the (presumed) starting point of the preceding trend (from sub-step 1.2.2.1.). This point is not considered as a potential t.2
:::'''4.2.B.''' The check reaches the bar that intersects the level of the presumed point 4 of the considered model.
:::'''4.2.C.''' A bar that is located at a distance (by time) from T.3 greater than or equal to X* (distance from T.3 to t.4), where x is the parameter set in the settings <ref> This is the "Time Ratio of 23 to 24"(by default it is 3)</ref>.
::=== Results ===
::As a result of the search for potential t.2 (i.e., upon the occurrence of4.2.A, 4.2.B or 4.2.C.), two scenarios are possible:
:::'''4.2.1. ''' One or more pairs of potential t.2 and t.1 are found (potential Foundation Blocks). The program moves to step 5.
:::'''4.2.2. ''' No potential Foundation Blocks are found. In this case, the program looks for the next potential t.5 according to step 2.