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The fifth dimension - Buy signal below the Balance Line

Obviously, if you buy below the Balance Line you hope that the price will move closer to the Balance Line (go "uphill"). Remember 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). This means that you need two highs to get the Buy signal below the Balance Line (pic.1).
Picture 1. Fifth dimension: buy signal is below the Balance Line
If bar "B" occurs it becomes the base bar, as it is the first bar whose high is lower than that of the preceding bar if you read the chart from right to left. In order to generate a Buy signal below the Balance Line you need two highs to the left of bar B. The first of these is bar "3". Bar "2" will not meet our requirements, as its high is lower that of bar "3". Bar "1" is the second high you are looking for because its high is above than that of bar "3". That is why you must place a Buy Stop 1 tick above the high of bar "1". When bar "4" occurs nothing changes: the base bar is still bar "B" and the pending order has not been triggered. Bar "5" changes nothing again. When bar "6" occurs the pending order is triggered and the Buy signal below the Balance Line is generated.