http://www.alpari-forex.com/en/chaos/line_b.html

The fifth dimension - Balance Line trades overview

The Balance Line is the line where the price would be if there were no new incoming information (Chaos) affecting the market. Mathematical calculations and computerised model analyses helped Bill Williams to find the Balance Line and build a histogram, which can be used to define the distance between the price and the Balance Line. To his surprise, Bill Williams found that this distance can be defined by the Awesome Oscillator histogram. Whenever new information comes into the market, it is easier (takes less energy) for the price to move away from the Balance line than to move towards it (“it is easier to go downhill than uphill”). The idea of the fifth dimension (pic.1): Buyers are weaker on the "b" bar in comparison to the "a" bar. It proves that the "b" bar's high is lower than the "a" bar's high. Why are sellers stronger on the "b" bar? The reason for this is that new information came to the market (on the picture it is shown as a dashed square) and changed the balance. If buyers become stronger and raise the market (refer to the "c" bar) to the "a" bar's high, this means that the market balance is changing and it may be a first signal to make a deal within the fifth dimension.
Picture 1. New information on the price chart
Bar "b" is the base bar. Base bar for a signal to buy is the most recent bar whose high is lower than the preceding bar's high ("b" bar in the figure above). It may be the current bar; for example, "b" bar when there is no "c" bar yet. Base bar for a signal to sell is the most recent bar whose low is higher than the preceding bar's low (it may be the current bar). The first three principles of Balance Line trades: Read the chart from right to left. If you are waiting for a buy signal, look at the highs only. If you are waiting for a sell signal, look at the bottoms only. Establish the base bar first (as described above). If you have found a base bar for a buy or sell signal then you are halfway to making a deal within the fifth dimension.