ALGORITHM I

The Orientaion rule (N1 requirement) for Algorithm I is as follows:
 If point 1 is low, then the level of point 3 should be equal to or higher than point 1. 
 If point 1 is high, then the level of point 3 should be equal to or lower than point 1.

For an accurate understanding of the algorithm, you should get acquainted with UMG General Concepts.

Step I. Find Point 1. Search for a Confirming Extreme.

1.1. The program searches for the first possible extreme that satisfies Single Bar Rule. This extreme is a candidate for point 1.

1.2. When a candidate for point 1 (hereinafter referred to as t.1 candifate) is found, all bars to the left (i.e., in the past) of the bar containing the t.1 candidate extreme are checked until one of the following events occurs:

1.2.1. The place of the last intersection of the price level of the t.1 candidate is found . In this case, the program searches for an absolute extreme that confirms point 1 from the intersection of the price with the t.1 candidate level (inclusive) to the bar of t.1 candidate (exclusive). There are two possibilities:

1.2.1.1. If the extreme is not found, the program searches for a new candidate for point 1.

1.2.1.2. If the absolute extreme is found, it is the beginning of the preceding trend. The point 1 is confirmed.

The program checks for the absence of extremes equal to point 1 from the Beginning of the preceding trend.

1.2.1.2.1. If such an extreme is found, this candidate for point 1 is discarded (the program continues to process other t.1 candidates).

1.2.1.2.2. If such an extreme is not found, the program proceeds to process the next bar after point 1 according to point 2 of the Algorithm.

1.2.2. The program has reached the starting point of the chart (i.e., after the starting point of the chart, the levels of points 1 and 2 have never intersected). The program searches for a confirming extreme from right to left to the starting point of the chart. The options are similar to the sub-steps 1.2.1.1. and 1.2.1.2.

1.2.3. The program has checked 50 bars preceding the bar of the potential point 1, and none of the above events have occurred. The program searches for a confirming extreme from right to left in the area of 50 bars before the potential point 1. The options are similar to the sub-steps 1.2.1.1. and 1.2.1.2.

Step II. Searching for Points 3 and 2.

If the program returns to this step during the construction of an alternative model, this branch of the algorithm stops.

The bar being analyzed after point 1 (or in cases of repeated application of the step specified in the algorithm) is checked for non-exceedance of the level of point 1.

2.1. If the level of point 1 is exceeded, the program discards this point 1.

2.2. Searching for Point 3. If the level of point 1 is not exceeded, the bar being analyzed is checked by rule N1 as an extreme.

2.2.1. If this bar is not an extreme according to rule N1 (as a potential point 3), the program checks the next bar in accordance with step 2.

2.2.2. If this bar is an extreme according to rule N1 (as a potential point 3), then

2.2.2.1. If this step (step 2) is applied again after confirmed candidates for point 3 have been found (i.e., such point 3, for which there is a point 2 between point 3 and point 1), but for one reason or another they were rejected, and the algorithm returned to the search for point 3, then the exceedance of the level of the previous candidate for point 3 by this extreme is checked.

2.2.2.1.A. If the check is not passed (i.e., if the level of the previous candidate for point 3 is not exceeded), then the program processes the next bar in accordance with this step (step 2) and further according to the algorithm.

2.2.2.1.B. If the check is passed, then the program proceeds to sub-step 2.2.2.2.

2.2.2.2. Searching for Point 2. The program searches for an absolute minimum (if point 1 and point 3 are high) or maximum (if point 1 and point 3 are low) in the range from point 1 to point 3 (hereinafter segment 1-3) as point 2 (hereinafter point 2). Then this bar is checked for "extremity" according to N1 rule. Two variants are possible :

2.2.2.2.A. If the bar is an extreme, then this is a potential point 2, and the potential point 3 becomes a confirmed point 3. In this case, the program proceeds to step 3.

2.2.2.2.B. The bar is not an extreme. In this case, the program begins to search for another candidate for point 3, for which it returns to the beginning of step 2.

If the program has processed 50 bars in a row in accordance with this step (step 2), and potential points 2 and 3 have not been found (i.e., the program has not yet moved to another step of the algorithm), then this potential point 1 is discarded.

If there are 150 or more bars between the potential point 1 and the bar being analyzed, and the program has not yet moved to another step of the algorithm, this potential point 1 is discarded.

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 – 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.3’ 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 – 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.

Step IV. Checking for Intersection of the Aim Line (AL) by Price on Section 2-4

The program checks for intersections of the Aim Line by price on the section from t.2 to t.4 (hereafter - section 2-4).

4.1. If the AL is intersected by price on section 2-4 the program checks the analyzed bar (which is also the bar of the potential t.4) for a breakout (in this case, not a touch) of the Trend Line (TL).

4.1.1. If the TL is not reached, the program processes the next bar according to step 3.4.

4.1.2. If the TL is broken,

- t.3 becomes the cancelled t.3;

- the program searches for a new candidate for t.3. To do this, the analyzed bar is processed according to step 2.

4.2. If the AL is not intersected by price on section 2-4 the program proceeds to step 5.

Step V. Model Fixation at the TL Breakthrough. Search for t.5. Search for t.6.

The bar t.4 (or in repeated applications of the step, the analyzed bar specified in the algorithm) is checked for reaching TL. The following scenarios are possible:

5.1. TL is reached (there is a touch of TL). In this case, the program checks whether the level of t.4 has been surpassed in the section from t.4 to the moment of reaching the price of TL (excluding the analyzed - i.e., the bar that broke through TL). This is possible with repeated applications of the step, i.e., when not t.4 will be analyzed, but one of the subsequent bars.

5.1.1. If the level of t.4 is not surpassed, then the model is considered formed [The model is formed without 6];

Then the program proceeds to step 6.

5.1.2. If the level of t.4 is surpassed, the program looks for an absolute extreme in the section from t.4 (excluding) to the bar that reached the level of t.4 (inclusive), as point 5 (hereinafter - t.5).

When searching for a potential t.5, it is necessary to take into account the requirement: in a particular case, if the bar t.4 belongs to the extreme, co-directed with t.5, t.5 must break through the level of this extreme (i.e., the level of t.5 should be further from the level of t.4).

5.1.2.1. If the extreme is found - this is a potential t.5.

There are 2 scenarios:

5.1.2.1.1. T.5 belongs to the bar, which broke through the level of t.4. The program checks whether the bar, which contains t.5 (and which broke through the level of t.4), is a bar that also contains and an absolute extreme in the section from this bar (inclusive) to the point of breaking through TL, (i.e., the current bar) (excluding). There are 2 scenarios:

5.1.2.1.1.1. The bar t.5 contains an absolute extreme, co-directed with t.4. In this case, the absolute extreme, co-directed with t.4, is a new potential t.4. The program builds an AL through this t.4 and checks the AL for the absence of price intersections in the section 2-4.

There are 2 scenarios:

5.1.2.1.1.1.A. On the section 2-4, the AL intersects with the price. In this case -t.3 becomes the canceled t.3; - the program is looking for a new t.3, for which it processes the bar that reached TL according to step 2 and further according to the algorithm.

5.1.2.1.1.1.B. On the section 2-4, the AL does not intersect with the price. The program proceeds to step 6.

5.1.2.1.1.2. The bar t.5 does not contain an absolute extreme, co-directed with t.4. The program proceeds to step 6.

5.1.2.1.2. T.5. belongs to the bar between the bar t.4 and the bar that broke through the level of t.4. The program proceeds to step 6.

5.1.2.2. The extreme is not found, the program is looking for the next candidate for t.4. To do this, the program processes the bar that has surpassed the level of the potential t.4 according to step 3.4.

5.2. TL is not reached. If the analyzed bar contains a potential t.4, the program checks the next bar according to step 5. If the analyzed bar does not contain a potential t.4, then it is subjected to simultaneous verification:

for extremity according to rule N1 (as t.5);

for the presence between the analyzed bar and the bar of the potential t.4 of bars containing price values, more distant from the potential t.4, than the most distant from t.4 value of the analyzed bar, as well as

-the presence between the analyzed bar and the bar t.4 of price values equal to the most distant value of the price of the analyzed bar (this is a check for the potential absoluteness of the extreme of the potential t.5).

5.2.1. If the bar is an extreme and it is potentially absolute, then this bar is a potential t.5. The program checks this bar for reaching the level of t.4. There are 2 scenarios:

5.2.1.1. If the level of t.4 is reached (confirmed by the bar of the potential t.5)

The program checks whether the bar, which contains t.5 (and which broke through the level of t.4), also contains an extreme, co-directed with the bar t.4:

There are 2 scenarios:

5.2.1.1.1. The bar t.5 contains an extreme, co-directed with t.4. In this case, the absolute extreme, co-directed with t.4, is a new potential t.4. The program rebuilds the AL through it and checks this LC for the presence of intersections in the section t.2-t.4. There are 2 scenarios:

5.2.1.1.1.A On the section 2-4, the AL intersects with the price. the program processes the next bar according to steps 3.4.

5.2.1.1.1.B On the section 2-4, the AL does not intersect with the price. The program checks the next bar according to step 5.

5.2.1.1.2. The bar t.5 does not contain an extreme, co-directed with t.4. In this case, the confirmation of the bar t.4 by the bar t.5 occurs.

The program proceeds to step 6. (there was an idea to redo to step 5.3.)

5.2.1.2. If the level of t.4 is not reached. The program proceeds to step 6 (there was an idea to redo to step 5.3.) At the same time, the program checks the next bar in accordance with this item (i.e., according to step 5), to find another model with the same t.1, t.2, t.3, t.4, but another t.5.

5.2.2. If the bar is not an extreme, or is not potentially absolute, then the program checks it for reaching the level of the potential t.4.

5.2.2.1. If the bar reaches the level of t.4, then the program looks for an absolute extreme between t.4 and the point of confirmation t.4 (i.e., repeated after t.4 reaching the level of t.4) as t.5. There are 2 scenarios:

5.2.2.1.1. If t.5 is present, the program proceeds to step 6 (there was an idea to redo to step 5.3.)

5.2.2.1.2. If t.5 is absent, the program proceeds to search for a new t.4, for which it processes the bar that reached the level of t.4 starting from step 3.4.

5.2.2.2. If the bar does not reach the level of the potential t.4, then the program processes the next bar from the beginning of this step (i.e., according to step 5).

5.3. Algorithm for determining the presumed real p.6:

5.3.1. Apply Algorithm I to the models, excluding AM.

Identify the price value that is farthest from the t.1 level, which is the level the price reached from t.3 to the first time the price touches the TL (referred to as the touch of TL). The touch of ЛТ occurs after t.4, indicating the moment when the model is formed.

The extremum identified in step 2 is considered the real t.6.

Instead of x's representing price value or time and date, the report displays the following:

P6: xxxxx (price value)

P6t: xx:xx:xxxx (time and date)

The technical parameters P6 and P6t are finalized at the moment the model is fully formed, which is when the price touches TL after t.4.

P6supp: -

P6suppt: -

5.3.2. If the price has not touched ЛТ after t.4 of the analyzed model at the moment of determining the presumed real p.6, the program will check if the number of bars formed after t.4 is more than 300.

5.3.2.1. If the number of bars formed after t.4 exceeds 300, the presumed real p.6 for this model will not be determined.

5.3.2.2. If the number of bars formed after t.4 does not exceed 300, several scenarios are possible.

5.3.2.2.1. One scenario is if the price has surpassed the t.4 level (meaning both t.4 and t.5 are confirmed). In this case, the program calculates the distance between the t.1 and t.4 levels.

This distance is then marked off from t.4 towards the t.6 level, either upwards for an ascending model or downwards for a descending model.

The program then checks if the price has surpassed this level in the section after t.4 of the analyzed model.

5.3.2.2.2. If the price has reached t.4 level, the report does not provide information on the presumed real p.6.

5.3.2.2.3. In the given scenario, the program checks if the price has surpassed a the t.4 level. If it hasn't, the program then identifies the price value that is farthest from the level reached after a specific time point (t.4). This extreme value is considered as the presumed real p.6.

5.3.2.2. If the price has not surpassed the level of t.4 (meaning t.4 and t.5 are not confirmed), the potential t.4 is considered as the presumed real p.6.

5.3.3. For AM the process is similar, but with one key difference. The TL is not used when determining the real or presumed p.6. Instead, the level of t.3 of the model under consideration is used to determine the real or presumed p.6.

5.4. Algorithm for Determining Whether the Model is from the Start of the Trend Model or Along the Trend (Trend-Following) Model

5.4.1. For main models except for EAM

The program sequentially checks bars from right to left (i.e., into the past) from the bar containing the extreme candidate at t.2 until it finds a price intersection of t.2 level .

• If the program has checked 50 bars up to t.1 of the model and such an intersection is not found, the model is considered a trend-following model.
• If the intersection lies to the left of the (presumed) starting point of the preceding trend (related to this model), the report displays:

G3: HTModel

* If the intersection lies to the right of the (presumed) starting point of the preceding trend, the model is considered a model from the start of the trend, the report displays:

G3: BTModel

* If the program has checked less than 50 bars up to t.1 of the model and reached the initial bar of the chart, and the sought-after intersection is not found, the model is considered a trend-following model, the report displays:

G3: NoData

5.4.2. For EAM, the same applies, but the program looks for an intersection at the level of t.4 instead of an intersection at the level of t.2.

The program proceeds to step 6.

Step VI. Search for Tangents and Construction of the Auxiliary Attraction Model

6.1. Search for t.2’

The program conducts a search for t.2’ (tangent, i.e., the rule N1 is removed for it), which will yield the LC, without any intersections with the price in the section between T.1 and T.2. Bars are checked from right to left starting from the bar t.2 to the bar t.1 inclusive (further – section 1-2). Point 2’ (further – t.2’) can coincide with t.2, if the LC through t.2 does not have extra price intersections on 1-2, however t.2’ cannot belong to the bar t.1.

6.1.1. If t.2’ is found

If t.2’ is found (including if t.2’ coincides with t.2), then the program calculates the Line of goals by the tangent from t.2’ to t.4 (further -AL’). It is then checked whether the considered model has the status [The model is formed without point 6].

6.1.1.1. The model has the status [The model is formed without point 6]

If the model has the status [The model is formed without point 6], the program proceeds to step 7.

6.1.1.2. The model does not have the status [The model is formed without point 6]

If the model does not have the status [The model is formed without point 6], the program proceeds to sub-step 6.2.

6.1.2. If T.2’ is not found

If t.2’ is not found (i.e., it is impossible to build such a line through points t.2’ and t.4, which will not contain extra points on section 1-2), then this is a model without an Auxiliary AM. Theprogram proceeds to step 7.

6.2. Search for t.3’ of the Auxiliary AM

The program constructs a line from t.3 (or t.3’ if it exists) to t.5 (Trend Line of the Auxiliary Attraction Model, further - TLam) and checks it for the presence of price intersections in the section between t.3 and t.5.

6.2.1. Intersections are found

If intersections are found, the line t.3/t.3’-t.5 in this case is not displayed on the chart. The program searches for such point 3’ of the Auxiliary Attraction Model (further t.3’am), through which it is possible to construct a line, which will not have price intersections on the section from t.3/t.3’ to t.5.

6.2.1.1. If t.3’am is found

If t.3’am is found, then the program constructs the Line of trend of the auxiliary model of attraction by the tangent from t.3’am to t.5 (further – TLam’) and calculates the level of intersection of AL’ and TLmp’ (further – calculated t.6). There are 2 options:

6.2.1.1.1. If the calculated t.6 is found

If the calculated t.6 is found, then a check is carried out for the minimum ratio of the time segment t.2-t.4 to the segment t.4-t.6 for the Auxiliary AM (should be within 0.5). If the check is not passed, then the model does not have an auxiliary MP (in this case LTmp is not displayed on the chart), the algorithm proceeds to sub-step 6.3. If the check is passed, the program checks whether the bar t.5 breaks through the level of the calculated p.6.

6.2.1.1.1.A. If the bar t.5 does not break through the level of the calculated p.6

If the t.5 bar does not break through the level of the calculated p.6, then the program proceeds to sub-step 6.3. In the report is displayed: AUX AM

6.2.1.1.1.B. If the t.5 bar breaks through the level of the calculated p.6

If the t.5 bar breaks through the level of the calculated p.6, then this AM cannot be built and the program is looking for a new t.4. for this the next bar is checked according to sub-step 3.4., or in case if the model has a mark draw_flag this branch of the algorithm stops.

6.2.1.1.2. The calculated point 6-th is not found

The calculated 6-th is not found (i.e., the lines do not intersect). In this case TLam is not displayed on the chart. In the report is displayed: AUX NoAM The program proceeds to sub-step 6.3.

6.2.1.2. If t.3’am is not found

If t.3’am is not found, then in the report is displayed: AUX NoAM The program proceeds to step 7.

6.2.2. Intersections are not found

Intersections are not found. In this case, the program calculates the level of intersection of TLam and AL’ (this is the level of the calculated p.6). There are 2 options according to sub-steps 6.2.1.1.1. and 6.2.1.1.2.

6.3. Construction of the Auxiliary AM through t.5

The program checks for the presence of t.5’ (the first possible local extremum in time on the section T.4-T.5). If T.5’ is found, in the report is displayed: AimsBlock5’ 5' If t.5’ is not, then in the report is displayed: AimsBlock5’ No5'

If t.5' is present, the program will follow a similar process as sub-step 6.2 to construct the Trend Line for the Auxiliary Attraction Model. However, this time it will start from t.5' and, if necessary, use another suitable t.3' (referred to as t.3'am5'). If the program successfully constructs a Auxiliary AM through t.5' (indicating convergence of the lines), the model will be labeled as [The AM is built through t.5'] in the report.

The report will display:

AUX5’: AUX5’

Alternatively, if the MP is not built through t.5', the program will display:

AUX5’: NoAUX5’

After this, the program will proceed to step.7.

Step VII. Determination of SP and Model Type.

The program recalls whether the model was built through t.2 or through t.2’

7.1. In case if AL is built through t.2 does not have intersection with the price on the section t.1-t.2, or if there is ALam, built through t.2’. Here and further it is assumed that if the line, built through t.2 to t.4 does not have intersections with the price on the section t.1-t.2, then it is considered that t.2’=t.2 and AL’=AL.

The type of the model is determined by the position of the intersection point of TL and AL’ (this is the line built from t.2’ to t.4) in relation to t.4:

7.1.1. The intersection point of TL and AL’ lies to the right of t.4. In this case the intersection point of the lines is the calculated point 6 (further - calculated t.6).), then the program calculates the ratio of time segments from t.1 to t.4 and from t.4 to calculated point 6 for AM.

7.1.1.1. If the section from t.1 to t.4, multiplied by 3 is greater than the section from t.4 to the calculated point 6 for CMP, this model's type is AM.

G1: AM

If the model under consideration is AM and at the same time it is formed (i.e. after t.4 the TL is broken through), the program checks each bar after the t.4 bar, until one of the following events:

7.1.1.1.1. A bar is found that has reached the level of t.3 (but has not reached the level of t.4). In this case, this branch of the algorithm is completed.

7.1.1.1.2. A bar is found that has reached the level of t.4 (while either not reaching or reaching the level of t.3).

-in case of the presence of the draw_flag label – this branch stops;

-in another case, the program checks for the presence on the section from t.4 (not including) to the bar, which reached the level of t.4 (inclusive) of the extremum, opposite to the extremum t.4 (i.e. co-directed with the extremum t.1 of the analyzed model. There are 2 options:

7.1.1.1.2.A. The extremum is found. In this case, the algorithm proceeds to step 8.

7.1.1.1.2.B. The extremum is not found. In this case the status of the formed model is canceled (the model is discarded);

-t.3 becomes the canceled t.3;

-the program searches for the next candidate for t.3. For this, the program processes the bar that broke through the TL according to step 2.

7.1.1.2. If

-the section from t.1 to t.4, multiplied by 3 is less than or equal to the section from t.4 to the calculated t.6 (for converging lines) and at the same time

-the section from t.1 to t.4 multiplied by 12 is greater than the section t.4-t.6, this model is AM/DBM

G1: AM/DBM

7.1.1.3. The section from t.1 to t.4 multiplied by 12 is less than or equal to the section from SP to t.1 (for TL and AL converging to the left), then this model is DBM.

G1: DBM

7.1.2. The intersection point of TL and AL’ (AL’ – this is the line from t.2’ – t.4) lies to the left of t.4 —this point is qualified as the Sacral Point (further – SP).

7.1.2.1. If

-the section from t.1 to t.4 multiplied by 3 is less than or equal to the section from SP to t.1, and at the same time;

-the section from t.1 to t.4 multiplied by 12 is greater than the section from SP to t.1 then this is EM/DBM

G1: EM/DBM

7.1.2.2. If the section from t.1 to t.4 multiplied by 3 is greater than the section from SP to t.1, this is eng. - EM.

G1: EM

7.1.2.3. If

-TL and AL of the model are parallel, or

-the section from t.1 to t.4 multiplied by 12 is less than or equal to the section t.4-t.6 (for TL and AL converging to the right);

-the section from t.1 to t.4 multiplied by 12 is less than or equal to the section from SP to t.1 (for TL and AL converging to the left), then this model is eng. - DBM

G1: DBM

The program proceeds to step 8.

7.2. If for this model it was impossible to construct AL (AL’) in such a way that there were no extra intersections on the section t.1 (inclusive) - t.2, then the program checks where TL and AL from t.2 intersect.

7.2.1. If the lines intersect to the right (i.e. after t.4), then

7.2.1.1. if the section from t.1 to t.4, multiplied by 3 is greater than the section from t.4 to the calculated t.6 (for converging lines), then this model is incorrect.

There are one of 2 options:

7.2.1.1.1 If the TL of the incorrect AM is broken through by the t.4 bar or the bar immediately following t.4, then

-in case of the presence of the draw_flag label – this branch stops;

-in another case t.3 becomes the canceled t.3 and the program searches for a new t.3, for this it processes the bar that broke through the TL AM according to step 2.

7.2.1.1.2. If the TL of the incorrect CMP is not broken through by the t.4 bar or the bar immediately following it, then the program searches for a new t.4, for this the next bar is checked according to sub-step 3.4.

7.2.1.2. -the section from t.1 to t.4, multiplied by 12 is greater than the section from t.4 to the calculated t.6, then this model is AM/DBM .

G1: AM/DBM

7.2.1.3. the section from t.1 to t.4 multiplied by 12 is less than or equal to the section from t.4 to t.6 then this model is DBM .

G1: DBM

7.2.2. If TL and AL intersect to the left (i.e. in the past) relative to t.4, the program performs an indirect check for the Strength of the trend. For this, a pseudo SP is used – this is the intersection point of AL (built through t.2) and TL in case it is impossible to build AL through t.2 so that there are no extra points on it. The following options are possible:

7.2.2.1. If the pseudo SP lies to the right (i.e. later) of t.1 to t.3 (or t.3’, if the model is built on it), then the type of this model is determined as EM, moreover, the model is strong by pseudo SP.

G1: EM

SP: strongpseudoSP

7.2.2.2. Otherwise

If the lines intersect to the left of t.1 (i.e. earlier), the following options are possible:

7.2.2.2.1. If the section from t.1 to t.3 (3’) is greater than the section from the intersection of TL and AL to t.1, the model is assigned the type EM, while the Strength of the model is not determined.

G1: EM

SP: undef

7.2.2.2.2. If

-the section from T.1 to t.3(3’) is less than or equal to the section from the intersection of TL and AL to t.1 and up to

-the section from T.1 to t.3(3’) multiplied by 3 is greater than the section from the intersection of TL and AL to t.1, the model is assigned the type is EM. At the same time, the model is weak.

G1: EM

SP: weakpseudoST

7.2.2.2.3. If the section from t.1 to t.3(3’) multiplied by 3 is less than the section from the intersection of TL and AL to t.1, then the model type is EM/DBM.

G1: EM/DBM

7.3. Also, occasionally there are cases when the model for some reason does not fall under any of the above options. Then the model type is not determined.

Step VIII: Search for Alternative Models. Launching a New Branch from the Previous t.1 but with a Different t.3

The program initiates a search for the subsequent model with the same t.1, but a new t.3. The bar following t.3/t.3’, according to step 2, is analyzed for this purpose. Concurrently, the program initiates a search for an alternative model in relation to the one already found. For this, it analyzes the bar that has broken through the level of t.4 as a potential t.4, according to step 3.4, and continues further according to the algorithm.