Breaker Block: What It Is, How It Works, and How to Trade It

What is a Breaker Block?

A breaker block is a price level that forms when an order block no longer holds and price later reacts to that same area as support or resistance.

In ICT and Smart Money Concepts (SMC), it’s simply a failed order block that starts working from the opposite side after a structure break.

You’ll usually see it after price pushes through a level that previously mattered. Instead of rejecting price again, that zone gets invalidated. When price comes back and reacts from the other side, traders refer to it as a breaker block, much like flipped support or resistance.

Breaker blocks are commonly used in ICT as a PD array, especially after a liquidity sweep and a clear shift in market structure. They don’t predict direction on their own, but they help traders understand how price behaves once an old level stops holding.

Traders use breaker blocks because they help highlight areas where price may:

• React after a market structure shift

• Retest a broken level before continuing

• Turn a failed order block into support or resistance

Bullish vs Bearish Breaker Blocks

You’ll see breaker blocks form in both directions. Sometimes they support a move higher, other times they cap price and push it lower.

What stays the same is the behavior: a level breaks, price comes back to it, and then reacts. The only difference is whether that reaction holds price up or pushes it down.

Let’s look at how bullish and bearish breaker blocks usually show up on a chart. In both cases, the key is not just the level itself, but how price breaks it and what happens around that break.

Bearish Breaker Block Explained

A bearish breaker block forms when price breaks below a bullish order block and later comes back to that same area, which now acts as resistance.

You’ll usually see this after an up move starts to fade. Price runs above recent highs, clears stops, then drops through a level that had been holding price up. Once that level is broken and price closes below it, the old order block is done.

When price returns to that area, traders just watch what happens. If price hesitates, struggles to push higher, or rolls over and moves lower again, that level is acting as a bearish breaker block.

If the price goes straight through it without slowing down, it’s simply not a level the market cares about anymore.

Bullish Breaker Block Explained

A bullish breaker block forms when price breaks above a bearish order block and later comes back to that area, which now acts as support.

You’ll usually see it after a down move starts to lose momentum. Price dips below recent lows, clears sell-side liquidity, then pushes up through a level that had been keeping price lower. Once price closes above that level, the old order block is no longer doing its job.

When price pulls back into that area, traders watch how it behaves. If price slows down, holds the zone, and starts moving higher again, that level is acting as a bullish breaker block.

If the price cuts straight through it and keeps dropping, the level simply isn’t respected.

How to Identify a Breaker Block on a Chart

When you’re looking at a chart, a breaker block usually shows up after the price has already made a clear move. It’s not something you guess in advance as price has to do the work first.

This is how traders usually spot one:

• First, spot an order block. It’s usually an area where price paused and then moved away with intent. That’s the level that matters later.

• Then wait for the price to actually break it. You want to see the price move through the level and close beyond it, not just poke it with a wick.

• After the break, the price often comes back. This is the part traders pay attention to.

• When price returns to that area, just watch how it behaves. If it holds as support or gets rejected as resistance, that’s when the level is acting as a breaker block.

How To Use Breaker Blocks in Trading

In breaker block trading, most traders don’t use these levels on their own. They treat them as areas of interest, not exact entry points.

The usual approach is simple:

• Price breaks a level and forms a breaker block

• Price comes back to the zone

• Traders wait to see how price reacts before doing anything
   

If price holds the area, traders may look for a trade in the direction of the move. If it doesn’t, they step aside. There’s no rush.

In breaker block trading strategy basics, entries are often taken on the retest, with stops placed just beyond the breaker block. Targets are usually set at recent highs, lows, or areas where price reacted before.

For beginners, the main value of breaker blocks in trading is patience. Instead of chasing price, you wait for it to return to a level that already proved it matters.

Used this way, breaker blocks help bring structure to trading decisions without overcomplicating the chart.

Timeframes and Markets to Use Breaker Blocks

Breaker blocks show up on any timeframe, but they’re usually clearer on higher charts like H1, H4, or daily, where breaks and retests are easier to see. On very low timeframes, they can still form, but there’s more noise.

They also work across markets. You’ll see them in forex, indices, commodities, or crypto. What matters isn’t the pair, but that price moves cleanly and respects levels.

Breaker Block vs Order Block vs Mitigation Block

These three concepts are closely related and often get mixed up. The difference between Breaker Block, Order Block and Mitigation block comes down to whether a level holds, fails, or flips after price returns to it.

• An order block marks where a strong move started.

• A mitigation block shows that the market is still respecting that level.

• A breaker block appears once the market stops respecting it and starts using it from the other side.

What Makes a Breaker Block Strong or Weak?

Not all breaker blocks are worth trading. Some levels are clearly respected, others aren’t. The difference usually comes down to how price behaved around the break and the retest.

A breaker block tends to be stronger when:

• Price broke the level cleanly, not just with a quick wick

• The move away from the level had momentum

• Price came back and reacted clearly (held or rejected without chopping around)
   

A breaker block is usually weaker when:

• Price barely broke the level

• The retest is messy or slow

• Price keeps moving back and forth through the zone

Risk Management When Trading Breaker Blocks

When trading breaker blocks, risk always comes first. Some trades work, others don’t. That’s just part of trading.

Most traders keep risk under control by doing a few basic things:

• Putting the stop just past the breaker block

• Keeping risk small on every trade

• Aiming for nearby highs or lows, not huge moves
   

In breaker block forex trading, price can move fast around these levels. When the stop is wider, the position is smaller. When the stop is tighter, the position can be a bit bigger.

If the level holds, you stay in the trade. If it doesn’t, you’re out. There’s no reason to argue with the market or try to make the trade work.

Conclusion

Breaker blocks are just another way to read how price reacts after a level breaks. Nothing more, nothing less.

Instead of chasing moves, they help you slow down and wait for price to come back to an area that already proved it matters. Sometimes it holds, sometimes it doesn’t, and that’s fine.

For beginners, the real value of breaker blocks in trading is clarity. You’re not guessing. You’re watching how price behaves, then deciding what to do.

Like any tool, breaker blocks work best when you keep things simple, manage risk, and don’t force trades. Most of the time, price makes it clear what matters, you just have to wait for it.