What action should be taken after an inside bar day according to the Toby Crabel strategy?

Following the Toby Crabel strategy, it's recommended to buy on the next open above the inside bar close after an inside bar day. The inside bar pattern is characterized by a bar whose high and low are within the range of the preceding bar, indicating a period of consolidation. This suggests that the market is indecisive and could be poised for a breakout, either upward or downward.

By choosing to buy on the next open above the inside bar close, a trader is positioning themselves to capture potential upward momentum that may follow the consolidation phase. The rationale here is that if the price breaks above the inside bar, it can signify renewed buying interest, potentially leading to a strong move in the direction of increased demand. This upward breakout aligns with the Crabel approach, which emphasizes the importance of momentum following price consolidation patterns.

In contrast, the other options suggest actions contrary to the strategy's focus on taking advantage of bullish momentum following a breakout above an inside bar. Understanding the significance of price patterns like the inside bar is crucial in a trader's ability to make informed decisions that align with market behavior.