Lesson 14 of 20 · 10 min
Breaker Block
Step 1
What it is
A breaker block is an order block that failed. Price moved away from a candle, came back, and closed straight through it.
Some traders then watch that same candle from the other side. A level that used to push price down may now hold price up. It is the same old idea as support turning into resistance, only with a more modern name.
Traders use it because the failure tells them something: whoever was on the other side has been proved wrong, and the failed level gives them a clear place to plan around.
Step 2
See it on a chart
A candle that started a move down fails when price closes back through it.
Illustrative chart with made-up prices and tick volume, built for teaching. It is not real market data and not a trade idea.
Step 3
The exact rules
What must be true before entry
- A candle that started a move against the trend.
- Price then takes out a swing high or low.
- Price closes back through that candle with a strong body.
What volume should show
Where to enter
Where the hard stop goes
Where the target goes
What invalidates the idea
- Price closes back through the breaker.
- Price drifts sideways through it instead of reacting.
When not to take it
- Only a wick went through the candle, with no close.
- The objective is too close to offer 3:1.
- Major news is due soon, or you would be trading outside your planned hours.
- You have just taken a loss and feel the need to win it back.
Step 4
Your turn: plan the trade
A level failed when price closed through it to the downside, and price has now come back up to test it. Mark your plan.
This setup is a short. Look at the candles and the volume. Choose a line below, then tap the chart to place it. You can also drag its label or type a price.
Illustrative chart with made-up prices and tick volume, built for teaching. It is not real market data and not a trade idea.
Step 5
The trap: flipping sides out of frustration
A breaker is about a failed level, and a failed level often means you just lost on the other side of it. Flipping straight round to win it back is revenge trading wearing a technical label. If you lost on the first move, take a break before you consider the second.
Read about revenge tradingStep 6