What is a Breaker Block?
💡 Definition
A Breaker Block is a previously valid Order Block that has been "broken" or violated by price, causing it to flip polarity and become the opposite type of block. When a bullish Order Block gets broken to the downside, it becomes a bearish Breaker Block (resistance). When a bearish Order Block gets broken to the upside, it becomes a bullish Breaker Block (support). Breaker Blocks signal that Smart Money has changed direction and the previous supply/demand zone now serves the opposite purpose.
In Smart Money Concepts (SMC), Breaker Blocks represent a critical shift in market dynamics. They occur when institutional sentiment changes and what was once a support zone becomes resistance, or vice versa. Understanding Breaker Blocks helps traders identify major reversals and avoid getting trapped in old directional bias.
Visual Representation
Bullish Order Block Becoming a Bearish Breaker Block
A bullish Order Block breaks, flips polarity, and becomes a bearish Breaker Block that rejects price downward
Types of Breaker Blocks
🟢 Bullish Breaker Block
Origin: Created when a bearish Order Block (resistance) is broken to the upside
Transformation: Previous resistance zone flips to become support
Expectation: When price returns, expect bullish reactions and rejections upward
Signal: Indicates Smart Money has shifted to bullish control and accumulation
🔴 Bearish Breaker Block
Origin: Created when a bullish Order Block (support) is broken to the downside
Transformation: Previous support zone flips to become resistance
Expectation: When price returns, expect bearish reactions and rejections downward
Signal: Indicates Smart Money has shifted to bearish control and distribution
How Breaker Blocks Form
The Transformation Process
Step 1: Valid Order Block Exists
An Order Block is established and working as expected - a bullish OB acts as support, or a bearish OB acts as resistance. Price respects this zone initially.
Step 2: Market Structure Shift Occurs
A Change of Character (CHoCH) or Break of Structure (BOS) signals that institutional sentiment is shifting. Smart Money begins positioning for the opposite direction.
Step 3: Order Block Gets Violated
Price decisively breaks through the Order Block in the opposite direction. This isn't just a wick or slight penetration - it's a clear, strong break that closes beyond the zone.
Step 4: The Block Flips Polarity
The moment the Order Block is broken, it transforms into a Breaker Block. Its polarity flips: support becomes resistance, resistance becomes support. The institutional orders that created the original block have been completely negated.
Step 5: Price Returns for Retest
After breaking the old Order Block, price often retraces back to the same zone. But now it's testing the Breaker Block with opposite expectations - a retest before continuation.
Step 6: Breaker Rejects Price
The Breaker Block rejects price in its new polarity direction. What was support now pushes price down; what was resistance now pushes price up. This confirms the flip and validates the new trend direction.
How to Identify Valid Breaker Blocks
- Clear Prior OB: The zone must first be a recognisable Order Block that produced a reaction or impulse.
- Decisive Close Through: The break should close beyond the OB on the timeframe that defined it (not just wick through).
- Structure Alignment: Break aligns with BOS/CHoCH in the new direction.
- Displacement: The break candle(s) show momentum/volume (displacement), often leaving an FVG.
- Retest Behavior: On return, look for LTF confirmation (shift of structure, sweep + break) at the same zone.
- Freshness: Fewer prior taps of the original OB increase reliability post‑flip.
- Context: HTF liquidity objectives nearby (equal highs/lows, swing points) to target post‑rejection.
Common Breaker Block Patterns
Real-World Breaker Scenarios
🔄 Classic Reversal Breaker
After an extended trend, the last Order Block in that direction gets broken, creating a Breaker Block. Price returns to test the Breaker and then launches in the new trend direction. This is the textbook breaker reversal pattern.
📊 Multiple Breaker Stack
Several Order Blocks get broken in sequence, creating multiple Breaker Blocks stacked on top of each other. Each subsequent Breaker adds confluence and creates stronger resistance/support zones.
⚡ Failed Breaker (Double Break)
A Breaker Block is created but then gets broken again in the original direction, transforming back into its original polarity. This "double break" often signals very strong directional conviction and stop hunts.
🎯 Nested Order Block Inside Breaker
Within a larger timeframe Breaker Block, a smaller timeframe Order Block forms in the new direction. The nested OB provides precise entry while the Breaker provides overall structure context.
🌊 Gradual Breaker Formation
Instead of one decisive break, price slowly grinds through the Order Block over multiple candles. The break is still valid—once price closes cleanly through, the transformation to Breaker Block is complete.
💥 Explosive Breaker Break
A strong impulse candle violently breaks the Order Block with high volume and momentum. These explosive breaks create the most reliable Breaker Blocks and often precede major moves.
Breaker Block vs Order Block vs Mitigation Block
Understanding the SMC Block Hierarchy
All three concepts are related but serve different purposes in Smart Money analysis:
Order Block
- Original institutional entry zone
- Acts as support or resistance
- Maintains same polarity until broken
- Foundation concept of SMC
- Can work multiple times
- Strongest when fresh/untested
Mitigation Block
- Order Block with unfilled orders
- Created by impulse moves
- Price must return to fill orders
- Temporary — gets "used up"
- Focus on imbalance resolution
- Specific timing expectation
Breaker Block
- Polarity flip of a prior Order Block after a decisive break
- Acts as the opposite of what it was (support ↔ resistance)
- Confirms structural shift (BOS/CHoCH) and new directional bias
- Often offers clean retest entries with strong rejections
- Reliability increases when fresh, with displacement and HTF confluence
Trading Breaker Blocks
Entry Strategy & Execution
Pre‑Trade Checklist:
✦ Confirm prior OB existed and was respected at least once
✦ Identify a decisive close through that OB (displacement)
✦ Mark the exact breaker range (open → wick extremes of the old OB)
✦ Align with HTF structure and liquidity objectives
✦ Note confluences: FVG overlap, session timing, round numbers
🎯 Entry Styles
Limit: Place at breaker open or 50% (mean threshold) of the old OB. Best when displacement was strong and the breaker is fresh.
Confirmation: Wait for LTF shift inside the breaker (sweep + BOS, engulfing, rejection wick clusters). Fewer false starts, slightly worse RR.
🛡️ Stops
Place SL beyond the far edge of the old OB wick or beyond recent LTF swing. Add volatility buffer (e.g., ATR(14) × 0.3–0.6).
📈 Targets
TP1 at nearest opposing liquidity (equal highs/lows) or FVG boundary. Leave runner toward HTF swing/imbalance. Typical base: 1R–2R to partial, then trail.
⚙️ Management
Move to BE after 1R or after a clear LTF structure shift in your favor. Scale on refined inner blocks inside the breaker on continuation.
🧩 Confluences
• HTF BOS/CHoCH • FVG overlap • Liquidity sweep into breaker • Session (London/NY) • Round numbers/PDH/PDL.
🚫 Invalidation
Breaker fails if price closes back through it on the defining TF (decisively), or if multiple clean retests occur with weakening reaction.
Common Mistakes & Power Notes
Trade the Flip — Not the Hope
- Assuming any broken level is a breaker — it must be a prior OB, not generic S/R.
- Entering without displacement evidence. Weak breaks often get reclaimed.
- Ignoring HTF bias and liquidity paths — breakers against HTF flow are lower‑probability.
- Stops too tight around wick noise; give room based on instrument volatility.
- Chasing retests outside your session or plan; patience beats FOMO.
Risk:
Keep risk per idea modest (e.g., 0.25%–1%). Breakers can be powerful, but if reclaimed, exit quickly—fight the urge to "hope it flips back."
Backtesting & Journaling Checklist
- Was there a clear, functioning prior OB?
- Did the break close decisively through the OB with displacement/FVG?
- Did HTF structure (BOS/CHoCH) support the flip?
- How fresh was the OB before the break (0/1/2+ taps)?
- Retest behavior: LTF confirmation present at the breaker?
- Entry style used (limit vs confirmation) and rationale
- SL methodology (edge/wick/ATR buffer) and actual buffer size
- Targets hit (liquidity/FVG/swing) and efficiency of move
- Screenshot + 2–3 line narrative of the flip
Pro Tips
Make Breakers Work For You
• On strong trends, the first breaker against the move often fails—look for the second after liquidity is cleared.
• Combine with time‑of‑day: London open sweeps into a breaker are high‑energy setups.
• Map HTF breaker, execute on LTF refined zones for tighter risk.