Market StructureAdvanced#SMC#ICT
Breaker Block
B
Definition
Similar to a mitigation block, but it involves a stop hunt (liquidity grab) before the structure is broken.
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Concept Diagram
Key Takeaways
1
A breaker block is a failed order block that has been broken through by price action
2
When a bullish OB fails and is broken below, it converts into a bearish breaker block
3
Breaker blocks act as new support or resistance levels after the polarity change
4
They represent institutional interest that flipped from buying to selling or vice versa
Practical Example
A bullish order block at $62K is broken to the downside as price crashes through it. This level now becomes a bearish breaker block — when price returns to $62K it finds resistance instead of support.
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Related Terms
Market Structure
Change of Character (CHoCH)The first sign of an internal trend shift on low timeframes, often occurring before a major high-timeframe trend reversal.
Market Structure
Order Block (OB)The last candle in the opposite direction before a strong directional expansion, marking institutional entry points.
Market Structure
Mitigation BlockA failed order block that didn't hold price but now acts as a future support or resistance level.
Market Structure
DisplacementA powerful move in price that shows clear institutional intent, leaving multiple Fair Value Gaps behind.
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