Originally Posted by Willis11of12

I'm not familiar with using the AO, what exactly do you mean by the top and bottom of a cycle?

In each round from positive to negative or reversed we look at the tops and bottoms it made at that cycle. So, now when a new cycle is forming we use the previous bottom or top as a SL + 4 pips, the way you described it yourself in the second part of your question.

And I assume buy the SL you mean if you are enterying a buy to put the SL 4 pips below the bottom right? And for a sell, 4 pips above the top + the spread(3) = 7, right?

correct