Key level breaker block

Breaker block

A Breaker block is basically a failed order block. When price breaks through an order block, it then turns into a breaker block when price comes back to retest it.

What is the difference between a Mitigation block and breaker block?

Attached Image (click to enlarge)

How to trade a breaker block?

The best way to trade a breaker block is get into a breaker block which just grabbed liquidity, and look for a confirmation entry on the breaker block.


MT4: Key level breaker block
MT5: Key level breaker block

Price just hit a Key level breaker block on H4 Nasdaq / US100

Price just reacted to the Breaker block we posted a few hours ago on Nasdaq

Before

Attached Image (click to enlarge)

After


Breaker blocks will also help you as Take profit levels so that you know when to get out of a trade.