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Breakout Scenarios

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Since I believe the trap is a clue element of a formation pattern, my algorithm distinguishes various breakout scenarios and calculates the expectation using only the statistics on a particular scenario. A formation pattern is made by 5 reversal points (ABCDE). Depending on the presence or absence of the traps, there are 8 possible breakout scenarios.

Possible breakout lines:

  • L(evel): horizontal level.
  • F(loating): “channel” line, goes from D parallel CE. Makes sense only when E < C.