ALGORITHM I

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The N1 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 acquainted with UMG General Concepts.

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

1.1. The program searches for the first possible extremum that satisfies N1 rule. This extremum is a candidate for point 1.

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

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

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

1.2.1.2. If the extremum is found, the candidate for point 1 is confirmed. The program then checks for the absence of extremums equal to point 1 from the beginning of the preceding to point 1.

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

1.2.1.2.2. If such an extremum 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 extremum 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 extremum 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.

2. 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.

3. 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.

Step 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.

4. 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.

5. 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. LT 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 t.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 t.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 t.6 for this model will not be determined.

The report should display the following information:

P6: --

P6t: --

P6supp: --

P6suppt: --

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 t.6. The report shows the following data:

P6: --

P6t: --

P6supp: --

P6suppt: --

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 t.6. In this situation, the report will show the following information instead of x's (which represent either price value or time and date):

P6: --

P6t: --

Additionally, the report will display the following details related to the presumed real t.6:

P6supp (the price value)

P6suppt (a specific time and date in the format xx:xx:xxxx)

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 t.6. In this scenario, the report displays the following:

P6: --

P6t: --

Additionally, the report will display the following details related to the presumed real t.6:

P6supp (the price value)

P6suppt (a specific time and date in the format xx:xx:xxxx)

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 t.6. Instead, the level of t.3 of the model under consideration is used to determine the real or presumed t.6.