The choice δ=1 labels an interval positively and its complement negatively, while δ=−1 reverses those labels. On three ordered points, every subset is either a consecutive block or the complement of a consecutive block, so all eight labelings occur. Thus three points are shattered.
Four ordered points are not shattered: the alternating labeling +,−,+,− has neither its positive set nor its negative set consecutive, so it cannot arise from an interval or its complement. Therefore