Class 18 CAB Scenario 1 and 2.

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Climatic Action Bar Scenario 1

Do not trade immediately on selling climax

wait for breakout of upper trigger line. price break it with momentum.

It can break in 3 different ways

scenario 1 is weakest. scenario 3 is strongest.

after breakout wait for retest.

For kill time zones we can buy at breakout but recommended is to wait for retest.

If any candle after selling climax break below trigger line then its not scenario 1 its either 2 or 3

invalid scenario 1
valid entry is after retest. ideally retest should retest lower trigger line. lower triggerline should also be touched

Breakout rule

  1. momentum candle
  2. low volume
  3. upper wick size should not be more than 10% of the candle body

Condition: Breakout candle volumes should be lower than the selling climax candle volume.

if volumes of breakout candle increases then dont trade

usually this is the last candle of the wave

Ideally wait for the retest of the lower trigger line. else on second breakout buy with sl below lower trigger line attempt 1:1 or set tp to from where the fall started

Scenario 2

If lower triggerline is swept by atleast 20-30 pips then we dont wait for second breakout

Examples

first bar is weak its formed at the boundary plus selling background is weak. second bar is strong but its scenario 3
not a good CAB as it has upper wick
retest is not done so VSA saved the sl hit no trade here
first cab is not valid as second over shadow it. second in itself doesnt follow all rules and breakout is with high volume
scenario two
scenario 1 but without retest as its strong POI

HINT Upper trigger line breakout confirms that CAB was actually buying activity

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