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Breaker blocks are failed order blocks that signify strong support or resistance zones, indicating a market direction change. Traders can capitalize on these areas by trading in the direction of the trend reversal, which can also aid in recovering losses. Understanding order blocks is crucial for accurately identifying breaker blocks in trading strategies.

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24 views

edited (14)

Breaker blocks are failed order blocks that signify strong support or resistance zones, indicating a market direction change. Traders can capitalize on these areas by trading in the direction of the trend reversal, which can also aid in recovering losses. Understanding order blocks is crucial for accurately identifying breaker blocks in trading strategies.

Uploaded by

jay
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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What are Breaker Blocks in ICT Trading

forexbee.co/breaker-blocks

January 22, 2025

Breaker blocks are failed order blocks that act as strong support or resistance zones and
cause a shift in market structure.
If an order block fails, it does not mean it was invalid or wrong. Instead, it indicates that
the market now intends to change direction, making the order block breaker area
important for traders. As a result, this area can also be traded in the direction of the trend
reversal.

In trading, we follow what we observe in the market and align with the big trends. If an
order block is broken and the trend changes, we can trade that order block breaker area
in the trend reversal direction. This strategy can also help recover previous losses.
Trading involves both profit and loss, so it is essential to trade in the direction of the trend
while maintaining emotional discipline.

In this post, I will explain breaker blocks in detail, so make sure to read the full article.

What Are Order Blocks in Trading?

Before understanding breaker blocks, it is essential to understand the true meaning of


order blocks. If you cannot correctly identify order blocks, you are likely to misidentify
breaker blocks as well. Let me first clarify the concept of order blocks.

On a candlestick chart, whenever the price is about to start a significant move, it typically
creates a ranging price structure beforehand. The price moves sideways in a tight range,
indicating a period of decision. You can think of this as “silence before a storm.”

When the price moves in a tight range and eventually breaks out, it makes a big impulsive
move. Impulsive moves refer to significant price increases or decreases over a short
period. After an impulsive wave, that price range acts as an order block.

In simple terms:

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