A trader made $40,000 in one month using a momentum breakout strategy. Wait for price to consolidate below resistance, then enter on a breakout above the high only if volume spikes. Place your stop loss below the range low and target the next resistance level.
Key level, breakout, volume, profit. Key level, breakout, volume, profit. It's the same thing every single time. And I made $40,000 in a single month doing this. And the strategy behind it takes 30 seconds for me to explain. Wait for price to approach a resistance level and then consolidate beneath it like this. Not every setup is going to consolidate, and that's honestly fine. But when it does, I like marking the high of the range and the low of the range. When price breaks above this high, I immediately observe the order flow and I'm checking volume. If it doesn't spike and there's a lack of volume, it's most likely a fakeout. But if volume spikes on the break and there's continuation, the move is real. Real buyers just stepped in at that exact moment, confirming the setup. Now I wait for price to retest the level, and when it does, I watch for a sharp bounce back above this previous resistance, which then now just turned into support. That rejection and bounce is my entry. I put my stop below the low, and my target is the next significant level above.
