
Why So Many Traders Miss Out on True Breakouts: Wisdom from TheChartGuys
TheChartGuys, led by experienced trader Lamont, continues to empower traders with practical expertise on navigating ever-changing market landscapes. For anyone who wants to master breakouts or learn more about market momentum, their YouTube channel is a treasure trove. In a recent insightful video, Lamont uncovered a common challenge for traders: recognizing and capitalizing on breakout moves in an environment with low volume and little resistance. Most beginners struggle to distinguish real momentum from false starts. This article breaks down Lamont’s key insights—showing you how to assess strength, anticipate red flags, and refine your approach to breakout trading.
Real-World Breakthrough: How Buyers Claimed New Highs
In the featured video, Lamont recounts a powerful market scenario that many traders will find relatable. Imagine this: buyers have patiently watched as price action consolidates near a prior all-time high, with trading volume fading and most sellers retreating. Suddenly, with no significant overhead resistance in place, the market begins to drift higher.
Lamont explains how “buyers took advantage of a low volume trading environment with no overhead resistance to float higher, breaking way above the prior all-time high.” This kind of move can catch even seasoned traders off guard, especially those waiting for definitive confirmation signals.
Buyers took advantage of a low volume trading environment with no overhead resistance to float higher, breaking way above the prior all-time high.
In this environment, there was a unique opportunity. As the previous high was surpassed, buyers were not just chasing price—they were seeking to establish a new support level, with ample space above to “defend that prior all-time high and affirm the June 27th breakout.” This paints a clear picture: the true breakout isn’t just about crossing a price line; it’s about the defending power that follows.
- Low volume breakouts can create sudden momentum shifts.
- Overhead resistance absence allows room for expansion.
- Establishing new support is as important as breaking out.
Breaking Down Momentum: Essential Clues for Assessing Buyer Strength
Lamont brings clarity to the confusion that often arises for new traders when price rockets past previous highs. The key, he explains, is not just to watch the breakout itself, but to assess whether buyers are genuinely able to defend their gains in the space above those prior resistance levels.
He continues: “Now there’s a good amount of space for them to defend that prior all-time high…and affirm the June 27th breakout.” This distinction is critical. Real market strength is proven not at the moment of the breakout, but in what follows—how well buyers hold their position and stave off sellers trying to reclaim lost ground.
Real market strength is proven not at the moment of the breakout, but in what follows—how well buyers hold their position and stave off sellers trying to reclaim lost ground.
To help you navigate similar setups, remember Lamont’s checklist for breakout momentum:
- Check volume levels — is the move sustainable or just a thin float?
- Identify overhead resistance zones — are they clear or in play?
- Observe post-breakout defense — do buyers step in to reinforce new highs?
- Watch for red flags — such as heavy selling on attempted pullbacks, or immediate reversals after the breakout.
By consistently applying this framework, traders can better distinguish real breakouts from short-lived spurts, minimizing the risk of false entries and improving overall trading performance. The primary keyword, breakout momentum, is not just a buzzword—it’s the central pillar that supports this tactical approach.
Transforming Your Trading Mindset: From Chasing Price to Defending Position
Perhaps the most valuable takeaway from Lamont’s discussion is the shift in mindset that advanced traders reveal. Beginners tend to focus only on the thrill of the breakout—“Did we cross the high? Am I in?” But the real pros think a step ahead. They anticipate the zones where their positions need to be defended.
When a breakout occurs with low volume and little resistance, it’s easy to be skeptical. Yet, Lamont explains that sometimes the most legitimate moves are when “buyers expand upward and immediately look to turn old resistance into new support.”
- Adopt a defensive framework: Evaluate whether buyers can turn breakouts into sustainable trends.
- Avoid overtrading failed breakouts: Not every move past resistance is a permanent shift—look for signs of conviction.
- Focus on quality over quantity: Wait for setups where buyers show genuine commitment beyond a chart line break.
This adjustment in approach means patiently watching market structure and being ready to adapt. As Lamont’s decade-long trading experience demonstrates, real consistency comes from seeing beyond the trigger and understanding the power of defense. It’s a subtle but powerful shift that separates struggling traders from those who know how to ride big trends.
The breakout momentum technique, when applied thoughtfully, can be the difference between frustration and long-term growth.
Grow Small Investments Big With Traderfriends
If you want to accelerate your trading journey and apply these pro-level breakout insights in real time, make the next step count. Traderfriends is your gateway to actionable education, hands-on mentorship, and a vibrant community of traders who share similar growth goals.
Tip for new traders: Start small and focus on a single breakout setup at a time. Journal your results, review your defense of new price levels, and steadily scale as your confidence grows. With the right support and methodology—like that found within the Traderfriends community—growing a small account into a meaningful portfolio becomes an achievable reality.