Breaker block

What it is

A breaker block is an order block that failed after a liquidity sweep. A bullish order block that fails becomes a bearish breaker (resistance); a bearish order block that fails becomes a bullish breaker (support).

The sweep is part of the definition. A bearish breaker forms like this: a swing high, a swing low, then a higher high that takes the buy stops above the first high, then a break below the swing low. The bullish order block inside that last rally is the breaker. If the block fails without that sweep, it is a mitigation block instead.

How to spot it

• Find a high (or low) that price has just swept.
• Mark the order block that launched the sweep move.
• Watch for price to close through it, ideally with displacement. That broken block is now the breaker.

How to use it

• Wait for price to come back to the breaker from the other side, and enter in the new direction.
• Stop beyond the breaker; target the next liquidity.

Common mistakes

• Calling any failed order block a breaker; without the sweep it is a mitigation block.
• Confusing a breaker with an order block that simply has not been reached yet.
• Entering before the close through the block.

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