Breaker block
A zone that failed and got broken through. After the break it works the other way round.
Breaker block — what it is?
A breaker block is an order block that failed to hold price. Price went straight through it and then came back to it from the other side.
The role of the zone flips at that point. A former demand zone, broken downwards, now works as a supply zone.
The mechanics are simple: whoever was building a position in that block is now at a loss. When price comes back to their entry they close out, and that pressure is what pushes price on.
Breaker block — how it is built?
The order is this: find the order block, confirm that price closed beyond it, wait for the return to it from the other side. The boundaries and quartile grid are built on the same candle as the original block.
Breaker block — common mistakes
Calling any broken level a breaker.
Confusing it with mitigation: a breaker flips the direction it works in, mitigation means the zone is spent.
Using a breaker without a break of structure in the new direction.
Taking blocks broken long ago: the fresher it is, the more unworked positions it holds.
Related to
Glossary
- Order block
- the last candle in the opposite direction before the impulse that broke structure.
- point
- the minimum step of a quote, usually ten times smaller than a pip.
- demand zone
- an area where buyers previously showed strength.
- supply zone
- an area where the sellers showed strength.
- position
- an open trade.
- close
- the last price of the period. Considered the most important of the four: breakouts are confirmed by the close.