I raised the same point a few posts back. Hopefully Graviton or jcgibson (who picked the same entry) could shed some light on this…
Guys,
See Tymen’s post #2374. He makes it quite clear, that in a squeeze, we DO NOT need to wait for a close below CBL.
To quote Tymen:
"These rules apply for BB bubble and BB sausages.
When there is a level/near level case, or a squeeze area we only need the CBL.
We have no need of the 2 special rules - close and smaller candle requirements. "
hope that helps…
well, this is the original definition given by Tymen:
what I just noticed is the line following this image:
“Note that the mid BB is going in the same direction as the price action when we are halfway thro the trade.”
the key words are actually halfway thro the trade…
this is what I was missing. so the allignment happens only at midway (the image is unrealistic, since it shows allignment from ALL THE WAY)
OK, back again - intermittantly. :o
I will answer this one for you PTB, because it is important.
Apparently more people are being confused by this one also.
In the chart shown, there are 3 extreme candles.
They are extreme, not because of their bottoms, but because of their tops.
Their tops are higher than all other previous candles.
So which one do we choose?
[U]The one we choose is the most recent one!![/U]
And the extension line is drawn from the bottom of that candle.
Hope this helps. 
thank u so much [B]mkbrooks[/B]!
this is what I was missing in that matter.
now it’s all clearer.
now the O-O Question is also answered, as [B]IronHeart’s[/B] shows it very nicely. though I think the CBL should have been 1 candle earlier, giving even better results.
you’ve all been very helpful.
I can proceed with my other questions now
Let me answer this for you, [B]parsush[/B].
The definition of an O-O price action is that it starts from one outer BB and ends abruptly at the other outer BB.
The definition of and O-BB price action is that it starts from one outer BB and touches the other outer BB, then starts a walk of that Band.
(This, of course, results in greater profit).
The mid BB [U]does not [/U]have to be aligned with the direction of the trade to qualify for a O-O type price action.
But if the mid BB is against us, it is prudent to set TP1 at the mid BB point because chances are that the price action may go no further.
In the case of the mid BB being for us, we may have confidence in the trade and, if you wish, you can set TP1 at the opposite outer band.
What about TP2 then?
Well, if the mid BB is for us, then chances are that the price action will develop into an O-BB type, and in that case TP1 is set on the initial touch of the opposite band, and TP2 would occur when the BB walk ended.
Hope this helps.
In this case, you have shown a chart with an extreme candle in a squeeze/level area.
According to the rules I posted in #2374 page 238, we draw the CBL extension and where it intersects the entry candle, [U]we enter immediately[/U].
[B]No waiting for a close!![/B]
The special, passing thro [U]close - small candle[/U] rules apply [U]only [/U]to BB bubbles and BB sausages.
Aha! it’s all clearer now. thanks a lot Tymen!
I assume the exits are made as price [U]touches [/U]our TP1 rather than [U]closes [/U]above\below it?
Questions on E / U today.
What do you think of this graph, I do not know what to think???
Reviews please
No, the image is realistic.
The diagram shows what you are likely to see when you enter such a trade.
You may see the agreement with your trade direction and the mid BB halfway thro your trade, but it is just as likely that you will see the same thing as you first enter the trade.
Actually, you close the trade when the price action touches the mid or outer BB.
That is exactly where you should set your exit point.
Exit as the price action crosses the band, not close above it.
Do not get confused with entries and exits!! :eek:
The TP1 and TP2 were set correctly.
The stop loss was set correctly at the high of the extreme candle.
But the entry and BE should have been taken from the low of the extreme candle - the one you have shown is incorrect.
Unfortunately, the correct entry and BE end up touching the mid BB and you would have zero TP1. :eek: :eek:
As I said before in #2374 page 238 (the entry rules).
The pass thro close + small candle rule applies only to BB bubbles and sausages.
In all other cases, when the CBL cut thro a candle, the entry is made [U]at that [/U][U]point [/U]and made [U]immediately[/U].
I am now going to list what I see as good potential trades and bad potential trades.
Here are the good ones >>>
Level BB trades or squeeze BB trades.
However, be aware that these may produce few pips unless you are in a higher timeframe such as 4 hour upwards.
ok, here’s another one
is this entry, given by IronHeart, valid because BB was breached 10-12 candle before (in the opposite direction)?
or is it valid because we’re not in a bubble\saussage formation hence no close above\below bb is needed (the wick above bb is enough?)
please keep posting, it finally starts making sense to me now!
More good trades >>>
These are OBB trades starting from the level/squeeze area to the left, then going on to a breakout in either a BB bubble or sausage format.
TP1 is set at either the mid BB if the mid BB is against us
or
the first touch of the BB if the mid BB is for us.
TP2 is set at the first BB disconnected candle in the bubble and at your discretion in the sausage.
The entry here is valid because the area is a level/squeeze area.
Note how the 2 outer BB are contracting somewhat.
This trade makes and excellent run downhill. 
so wherever we’re in a level\squeeze area we can start drawing CBLs without any extreme candles needed? just like that? :o
I thought he should have used the candle to the left as the extreme candle to draw his CBL. The candle he used actually had a lower CBL. Maybe I’m being nit picky.