TSM: Real Range BreakEntered a sizeable TSM position upon true break of this accumulation zone. This is also meant to be an education study of how to properly use moving averages. Many traders use moving average crossovers as buy and sell signals. While a crossover can potentially signal the start of an uptrend, they more often signal a non trending accumulation or distribution period. We want to see MA's arranged from shortest term to longest, and some distance between the MA's to determine whether a true uptrend is occurring. Notice how on each one of the false breaks of range, the MA's were not stacked properly, signaling that an uptrend has not yet formed, and is instead still in an accumulation period. This breakout was different, price action gave us both a shortfall and a bullish MA stack, telling us that price action has had enough time to build out a base that can support a new uptrend.
