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Step 2

Consolidation or retest around the active moving-average area.

After Step 1, price consolidates or retests around the 10/20 moving-average area.

The structure is visual. Price does not need to touch an average exactly. Step 2 still needs a readable base with pause, compression, overlap, or back-and-forth inside one coherent range. A run of higher candles is not a bullish base by itself. A run of lower candles is not a bearish base.

Repeated movement through the averages can be chop, but overlapping candles around the 10/20 may also be one valid consolidation. The deciding question is whether the candles form one base with a later directional expansion.

Step 2 is observation. Wait for clear directional expansion from the consolidation before looking for the first candidate in the move.

If the structure fails or remains unclear, record Wait.

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.