Riding the Move: Momentum and Breakout Trading in Crypto

Short-term crypto traders often watch the same signals that stock day traders have relied on for decades: a price that pushes through a level it has struggled to clear, or an asset that keeps gaining ground on rising volume. Those ideas anchor a recent episode of Ledger Cast, the cryptocurrency trading and blockchain podcast hosted by Brian Krogsgard. In it, Krogsgard brings in Jonny Moe to walk through momentum and breakout trading.

Momentum trading rests on the idea that assets moving strongly in one direction tend to keep going for a while. Traders in this camp look for that strength, get in, and get out when the move starts to fade. Breakout trading is closely related. It focuses on the moment a price moves above a resistance level, or below a support level, after a period of consolidation, with the hope that the new range marks the start of a bigger move. The catch is that breakouts fail often. A price that dips above a level and slides back can trap eager buyers, which is why predefined exits matter as much as the entry.

Moe comes to the approach from equities, where traders often work with very short charts such as one-minute and five-minute candles. According to the episode, much of the underlying strategy still traces back to that background, even though the style has been adapted to the faster and more volatile crypto market. The two hosts discuss how the trader's approach has changed over time and which lessons from stocks held up.

Two pieces of advice from the conversation stand out. Moe urged listeners not to marry a bag, meaning not to hold a token out of loyalty or hope, especially when it has no obvious utility. The advice was to be willing to cut a losing trade loose. Krogsgard offered a related point: do not try to squeeze out one more pump from a coin that has already paid well. Roll that profit into a trade with more immediate potential instead.

The episode also covers news of the week, including a scare over a possible Bitcoin ban in South Korea that did not end up banning anything, and it takes listener questions.

The hosts stress that the episode is educational and should not be treated as investment advice. Listeners are encouraged to do their own research before buying anything.