Editing ALGORITHM II (section)

==== Presupposition Search Algorithm ====
The program takes each potential t.2 of the EAM (as part of a potential FB) as a t.1 of Presupposition (hereinafter t.1p). In other words, the program tries to construct Presuppositions from each of the t.2.

Initially, the most recent (rightmost) potential t.2 (or the one specified in the algorithm if we have returned to the beginning of the Step V in the cycle) in the EAM is taken as a potential t.1p. If there are no more unconfirmed t.1p, the algorithm proceeds to Step 6.

: '''5.1.''' The program sequentially checks bars from left to right (into the future) from the potential t.1p to t.3 of EAM model (excluding t.3) for being an extreme according to the N1 rule as point 3 of the Presupposition (hereinafter t.3p).

: '''N1 rule for the Presupposition points'''
: If t.1p is low, t.3p must be below t.1p.
: If t.1p is high, t.3p must be above t.1p.

:: '''5.1.1.''' If the potential t.3p is not found, the program considers the next (to the left of the previous) potential t.2 of the EAM (within the FB) as t.1p.
:: If the potential t.3p is not found, and there are no more potential FBs, the algorithm proceeds to Step 6.
:: '''5.1.2.''' Once the potential t.3p is found, the program searches for point 2 of the Presupposition (hereinafter t.2p) as an extreme with the maximum/minimum price on the segment from t.1p to t.3p (hereinafter segment 1p-3p).
:: If a suitable extreme is not found, the algorithm looks for the next potential t.3p for the previously found t.1p.
:: If a maximum/minimum is found, it is checked for for being an extreme (as t.2p).
:: There are two possibilities:
::: '''5.1.2.1.''' The bar is an absolute extreme. In this case, a potential t.2p is found, and the program proceeds to step 5.2.
::: '''5.1.2.2.''' The bar is not an extreme. In this case, the program looks for another candidate for t.3p for the previously found t.1p following the instructions in 5.1.
: '''5.2.''' The program constructs a line from t.1p to t.3p and checks it for price crossings on the segment from t.1p to t.3 of the EAM (including t.3 of EAM).
:: '''5.2.1.''' If this lines price crossings are found, the program looks for a new candidate for t.3p for the previously found t.1p following the instructions in sub-step 5.1.
:: '''5.2.2.''' If there are no price crossings, the program proceeds to sub-step 5.3.

: '''5.3.''' The program searches for a potential point 4 of the Presupposition (t.4p) according to the N1 rule on the segment from t.3p to t.3 in the VMP (including t.3).

: If t.1p is low, t.4p must be below t.2p. Each subsequent candidate for t.4p must be below the previous candidate for t.4p.
: If t.1p is high, t.4p must be above t.2p. Each subsequent candidate for t.4p must be above the previous candidate for t.4p.
: Possible scenarios:
:: '''5.3.A.''' If the potential t.4p coincides with t.3 in the EAM, t.4p is confirmed (found), and the program proceeds to sub-step 5.3.1.
:: '''5.3.B.''' If the potential t.4p does not coincide with t.3 in the EAM (i.e., it is located before it), the program looks for an opposite-direction potential t.4p extreme on the segment from the potential t.4p (excluding it) to the bar where the price again reached the value of the potential t.4p (excluding it).

:: There are two possibilities:
::: '''5.3.B.1.''' If the opposite-direction extreme is found, t.4p is confirmed (found), and the program proceeds to sub-step 5.3.1.
::: '''5.3.B.2.''' If the opposite-direction extreme is not found, the program looks for a new potential t.4p following the instructions in sub-step 5.3.1.
:: '''5.3.1.''' If t.4p is found, the program constructs a line from t.2p to t.4p and checks it for price crossings on the segment from t.1p (excluding it) to t.3 in the VMP (including t.3).
::: If unnecessary intersections are found, the program looks for the next potential t.4p on the segment following the instructions in 5.3.
::: If no unnecessary intersections are found, the algorithm proceeds to sub-step 5.4.
:: '''5.3.2.''' Check for Absolute Level
:: The program checks the bar of the potential t.3p for absoluteness. The level of t.3p should not be exceeded by the price on the segment between t.3p and potential t.4p (excluding it).
::: '''5.3.2.1.''' If the level of t.3p is exceeded, the potential t.3p is discarded, and the program looks for a new t.3p following the instructions in sub-step 5.1. and further according to the algorithm.

:::: '''5.3.2.2.''' If the level of t.3p is not exceeded, t.3p is confirmed, t.4p is confirmed, and the algorithm proceeds to sub- step 5.4.