2. Lexical analysis

The indentation levels of consecutive lines are used to generate INDENT and DEDENT tokens, using a stack, as follows.

Before the first line of the file is read, a single zero is pushed on the stack; this will never be popped off again. The numbers pushed on the stack will always be strictly increasing from bottom to top. At the beginning of each logical line, the line’s indentation level is compared to the top of the stack. If it is equal, nothing happens. If it is larger, it is pushed on the stack, and one INDENT token is generated. If it is smaller, it must be one of the numbers occurring on the stack; all numbers on the stack that are larger are popped off, and for each number popped off a DEDENT token is generated. At the end of the file, a DEDENT token is generated for each number remaining on the stack that is larger than zero.

Here is an example of a correctly (though confusingly) indented piece of Python code:

def perm(l):
        # Compute the list of all permutations of l
    if len(l) <= 1:
                  return [l]
    r = []
    for i in range(len(l)):
             s = l[:i] + l[i+1:]
             p = perm(s)
             for x in p:
              r.append(l[i:i+1] + x)
    return r