I also didn't understand at first that he was counting during the pull back. At first I just thought he was counting after the low/high of the pull back was made till break out. If you go through the thread and charts and examples you will see he is counting in 3 places. During pullback until the low/high of the pull back is formed, after the pull back low/high has been established until break out and then once your in the trade if too much sideways action get out. So basically it filters the pull back from sideways action in two places, while it's pulling back and until it breaks out. Hope makes sense. Again, figure your break out level and watch to see if the pull back is too large for your 15 or 18 pip stop loss. The pull back must be within that range depending on which pair your trading. In your bar counting remember the rule of each bar being a full pip above/below previous bar to be a new high or low in the pull back or its just another sideways bar.