ICT Breaker Block

A breaker block is a failed order block that results in market liquidity being taken out and the market structure changing from bullish to bearish or vice versa. This can provide price action traders with valuable information about what the market is likely to do next.

In this blog post, we will discuss the concept of ICT breaker blocks and how to use them to find trading opportunities.

Learn more about ICT Order Block

ICT Breaker

Inner Circle Trader (ICT) defined a breaker block as a failed Order Block created after the liquidity sweep and shift in the market structure.

ICT Bullish Breaker Block

Let’s consider the above chart that illustrates the failed Bearish order block and converts it into a bullish breaker block in the future this failed OB worked as a support and the price from this point moves upward direction.

ICT Bearish Breaker Blocks

Here is another example showing the Failed Bullish Order Block and these Bullish Order Blocks convert into Bearish Breaker Blocks.

How Breaker Blocks Works

The logic behind the Breaker Block is the Algorithm that governs the market is always in search for liquidity. People find order blocks and anticipate that the price will move up and down in a bullish and bearish OB scenario respectively and place their stop losses on the below in bullish OB and above in the case of Bearish OB as shown in the below chart.

Market Maker (MM) and smart money take advantage and hunt people to stop losses and move the market in the opposite direction.