Trade failed order blocks that flip from support to resistance.
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Overview
A Breaker Block is a failed Order Block. When an order block is violated β price trades through it without reversing β it flips polarity and becomes a breaker: what was support becomes resistance, and vice versa. This flip occurs because the institutional orders that originally defended the order block have now been absorbed or reversed.
Bullish breakers form when a bearish order block (resistance) is broken by a bullish impulse. The broken OB zone, now acting as support, is expected to hold on the first retest. Bearish breakers form when a bullish order block (support) is violated: the zone becomes resistance on re-test.
The high-probability setup involves waiting for price to return to the breaker zone after the initial violation, watching for a reversal confirmation candle, and entering in the direction of the break. The stop is placed beyond the breaker zone, and the target is the next significant liquidity pool.
Breakers are particularly powerful when they coincide with FVGs or when the initial break was accompanied by a liquidity sweep. Multi-timeframe confluence β identifying the breaker on a higher timeframe and entering on a lower timeframe β improves the precision of the entry.
Strategy Code
This is a TradingView Pine Script strategy example for this page concept. Paste it into the TradingView Pine Editor, add it to your chart, and run it in the Strategy Tester.
//@version=6
strategy("Breaker Blocks Strategy", overlay=true)
emaFast = ta.ema(close, 20)
emaSlow = ta.ema(close, 50)
bullStructure = close > emaFast and emaFast > emaSlowThis is a thinkorswim ThinkScript strategy example for this page concept. Open thinkorswim, create a custom strategy, paste the script, and apply it to your chart.
def fast = ExpAverage(close, 20);
def slow = ExpAverage(close, 50);
def liquidityGrab = low < Lowest(low, 10)[1] and close > open;
def buySignal = close > fast and fast > slow and liquidityGrab;
def sellSignal = close < fast;Join thousands of traders who use auto-Trading to execute this strategy automatically, 24/7.
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