Assume a three box reversal and assume the box increment for all ranges is 1. Also assume that the current bar is an X with a high of 36 and a low of 32.
Begin X Loop:
If the next price bar’s high is 37.25, Investigator would draw a new X box up to 37, since the price is greater than or equal to 37 and would then immediately go to the Begin X Loop.
If the next price bar’s high is 38. 5, Investigator would draw a new X box up to 38, since the price is greater than or equal to 37 and would then immediately go to the Begin X Loop.
If the next price bar’s high is 34.25, Investigator would then check the price bar’s low value. If the price bar’s low is greater than 34, it would go back to the Begin X loop.
If the next price bar’s high is 34.25, Investigator would then check the price bar’s low value. If it is less than or equal to 34, Investigator would start drawing a new O bar, with a high value of 37 and a low value of 33 and would then go immediately to the Begin O Loop.
The reciprocal calculations are performed for the O Loop.
Begin O Loop:
If the next price bar’s low is 31.5, Investigator would draw a new O box down to 32, since the price is less than or equal to 32 and would then immediately go to the Begin X Loop.
If the next price bar’s low is 30.75, Investigator would draw a new O box down to 31, since the price is less than or equal to 31 and would then immediately go to the Begin X Loop.
If the next price bar’s low is 30.25, Investigator would then check the price bar’s high value. If the price bar’s high is less than 35, it would go back to the Begin O loop.
If the next price bar’s low is 30.25, Investigator would then check the price bar’s high value. If it is greater than or equal to 35, Investigator would start drawing a new X bar, with a high value of 35 and a low value of 32 and would then go immediately to the Begin X Loop.