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The fifth dimension - Buy signal above the Balance Line

If the price is above the Balance Line and you wait for a signal to buy, then you expect that the price will move away from the Balance Line (go "downhill"). Principle 4: If you move away from the Balance Line then you need one more new high (low) to buy (sell). If instead, you move towards the Balance Line, then you need two new highs (lows). Following this principle, for a buy signal you need to wait for the price to rise above the high of the closest preceding bar whose top is higher than that of the base bar (pic.1).
Picture 1. Fifth dimension: buy signal is above the Balance Line
Let's assume that on the price chart you see bar "1" and all the preceding bars. Hence, you cannot see bars "2", "3", "4" etc yet. At this point, bar "1" can be defined as the base bar for a signal to buy, as it is the most recent bar whose high is lower than that of the preceding bar. The main principle of the Buy signal above the Balance Line is that a Buy Stop order has to be placed 1 tick above the high of the bar that precedes the base bar (in our case it is bar "1"). Bar "2" occurs on the chart with the high that is lower than that of bar "1"; so, bar "2" becomes the base bar. The Pending order has to be deleted and a new Buy Stop must be placed 1 tick above the top of bar "1" (the bar that precedes the base bar "2"). The same happens on bar "3" and bar "B". Once bar "B" has appeared it becomes the base bar, and the pending order has to be placed 1 tick above the high of bar "3". After that bar "4" occurs, but bar "B" is still the base bar, i.e. if you read from right to left, this bar is the first with the high lower than that of the preceding bar. The high of bar "4" is lower than the pending order, so you are not in the market yet. Bar "5" occurs, the base bar remains the same and the pending order is not triggered. But then bar "6" appears and its top is higher then that of the bar which precedes the base bar, so your Buy Stop is triggered and you enter the market following the Buy signal above the Balance Line.