Step 1: Break Through the 10/20 SMA Area
Step 1: Break Through the 10/20 SMA Area. Definitions, examples, and conditions to check before taking a trade.
Begin with the Range Model: two setups and two targets. This page gives supporting detail or an entry-method reference within that map. Its method-specific conditions apply when you choose that method.
Step 1 is price breaking through the active 10 and 20 SMA area in the proposed direction. It starts a possible sequence. It does not establish a complete setup or a PTB entry by itself.
Bullish and bearish reads
In a bullish example, price moves from below the active area through it. In a bearish example, price moves from above it to below. Read the event alongside the daily and hourly map and the 50/200 SMA context.
Invented chart prices illustrate the sequence. This is not a recorded trade or performance result.
What to watch next
After the break, look for a readable pause, base, or retest. It may overlap around the averages. Mark the structure that could become Step 2 before expansion makes the answer look obvious.
If price immediately runs far from the averages, a large move does not manufacture a missing base. If price repeatedly crosses them with no coherent structure, record wait.
Common misclassification
An average cross alone cannot supply entry, stop, room, and management. Keep Step 1 separate from a completed three-stage sequence. See Step 2 for the base requirement and the full illustrated guide for entry choices.