Scribd
Upload
1K views2 pages

Climactic Action Bar Advanced Scenario

The document outlines the advanced version of Climactic Action Bar Scenario 3, focusing on the 'Automatic Rally' setup in trading. It details the conditions for identifying CABs, the entry and stop loss strategies, and emphasizes the importance of patience for achieving high rewards. The scenario describes a price movement pattern involving retracement, rejection, and breakout, which traders can utilize for effective trading decisions.

Uploaded by

samuel
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
1K views2 pages

Climactic Action Bar Advanced Scenario

The document outlines the advanced version of Climactic Action Bar Scenario 3, focusing on the 'Automatic Rally' setup in trading. It details the conditions for identifying CABs, the entry and stop loss strategies, and emphasizes the importance of patience for achieving high rewards. The scenario describes a price movement pattern involving retracement, rejection, and breakout, which traders can utilize for effective trading decisions.

Uploaded by

samuel
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Climactic Action Bar Scenario 3 - Advanced Version (Automatic Rally)

Hello, traders! Welcome to our channel "The Trading". Today we will study the advanced version of

Climactic Action Bar Scenario Number 3.

=== Recap of Previous Lessons ===

We are studying Climactic Action Bars (CABs) - looking for buying opportunities during selling

climaxes in an uptrend.

--- Scenario 1 ---

- Price retraces in an uptrend and forms a CAB.

- Rules to identify CAB:

1. Selling background

2. Strong bearish candle

3. Largest candle in the leg (big spread)

4. Ultra-high volume

- After CAB forms, wait for retracement or re-entry into the CAB with low volume.

- Entry: After re-entry confirmation

- Stop Loss: Below the CAB low

- Target: Above breakout

--- Scenario 2 ---

- CAB forms, price sweeps the CAB low and then breaks upper trigger line.

- Entry: Above breakout

- Stop Loss: Below CAB low


--- Scenario 3 (Standard) ---

- Price closes below lower trigger line, ranges, then breaks above.

- Entry: After upper breakout

- Stop Loss: Below range low

=== Advanced Scenario 3: Automatic Rally ===

- Rare but powerful setup with high accuracy.

- Steps:

1. Price in uptrend, then retraces.

2. CAB forms with 4 rule confirmations.

3. Mark lower and upper trigger lines.

4. Price rises but gets rejected at upper trigger (no close above).

5. Price drops, breaks CAB low again - forming "Automatic Rally".

--- Automatic Rally Setup ---

- Price forms a leg up, gets rejected, falls again forming a range.

- Volumes during this are normal (range volumes).

- Identify the channel formed by connecting:

- High of rally

- Low of CAB

- Entry: On breakout from this channel.

- Stop Loss: Below breakout leg

- Reward: High due to exhaustion followed by breakout momentum.

Note: This pattern requires patience but gives one of the best monthly setups.

You might also like