An observation is not yet a complete procedure
The example uses each completed bar’s high H, low L and close C. Prices are invented and intervals equal. This is an editorial teaching rule, not the formula of SW Sequential, SW Breakout or any platform indicator.
Before looking ahead, define a candidate as a close above the highest high of the previous three bars. The current bar is excluded from that maximum. Fewer than three previous bars means insufficient data, not a negative signal.
The candidate becomes known only after the close
The first three highs are 100, 101 and 102. Bar 4 therefore has a reference level of 102. Its close of 102.5 exceeds that level, creating a candidate after bar 4 closes. While the bar is forming its final close remains unknown.
A chart label may be placed on bar 4, but the knowledge time is after its close. The label does not establish that the state was known at the bar’s open or during its formation. Freeze level 102 for the next-bar check.
| Bar | H | L | C |
|---|---|---|---|
| 1 | 100.00 | 98.00 | 99.00 |
| 2 | 101.00 | 99.00 | 100.00 |
| 3 | 102.00 | 100.00 | 101.00 |
| 4 | 103.00 | 100.00 | 102.50 |
Define confirmation, cancellation and the waiting deadline first
Wait for exactly one further completed bar. Confirmation requires its close strictly above 102.5 and its low at least 102. Cancellation requires its close at or below 102. If neither condition holds, the waiting period expires without confirmation: a separate outcome, not a confirmed signal.
All three outcomes are determined after bar 5 closes. We do not examine intrabar triggering or assume an execution price. Changing thresholds after seeing the continuation creates a new rule requiring a separate evaluation.
Three alternatives are not one observed history
In continuation A, close 103 exceeds 102.5 and low 102.1 is at least 102: confirmation becomes known after bar 5 closes. In B, close 101.5 is at or below 102: cancellation becomes known at the same stage.
In C, close 102.3 exceeds the cancellation level but misses the confirmation threshold; low 101.8 also fails the confirmation check. The single permitted waiting bar ends without confirmation. A later rise would not justify relabelling this outcome as confirmed.
| Version | H | L | C | Outcome |
|---|---|---|---|---|
| A | 104.00 | 102.10 | 103.00 | Confirmed |
| B | 103.00 | 100.50 | 101.50 | Cancelled |
| C | 103.00 | 101.80 | 102.30 | Waiting expired without confirmation |
Keep enough information to reproduce the check
For each attempt, record the data, rule version, original bar, availability time and outcome. This journal contains no purchase, sale, profit or trading-system assessment. The next practical exercise is to identify states on closed bars and compare your record with the specific tool’s rules.
The platform guide explains confirmation, deferral and cancellation for an existing tool with its own conditions. The teaching thresholds 102 and 102.5 have not been added to that tool.
- Write the criteria before viewing the next bar.
- Separate the labelled bar from the time its outcome becomes known.
- Keep confirmation, cancellation and expiry distinct.
- Do not treat an observational state as an order to trade.
Primary sources
Sources explain the mechanics and limitations; the editorial examples use invented numbers rather than market quotations.
Your next practical step
Student Wyckoff Pro helps you study closed bars and save your analysis. It does not execute trades; access and the Windows connection are explained in the guide.
Explore confirmation and cancellation in the guide ↗