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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.

Bullish break, base, and expansion schematic

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.

Use these docs for education, chart study, replay, and process review. Every setup can fail. You remain responsible for risk, size, orders, execution, and the decision to trade.