Breaker Blocks (BB)
Identification Rules
How to spot breaker blocks on your chart. Key criteria that define this pattern.
- First identify an existing order block (bullish or bearish)
- Wait for the order block to be invalidated by a candle close or wick through the zone
- The invalidated order block now becomes a breaker block with opposite bias
Entry Rules
Precise timing and levels for entering BB trades with optimal risk-reward.
- Enter long positions when price retests a bullish breaker block zone
- Enter short positions when price retests a bearish breaker block zone
- Only enter trades with additional confluence factors
Stop Rules
Where to place stops to protect capital and manage downside risk effectively.
- Place stop loss slightly below bullish breaker block zones
- Place stop loss slightly above bearish breaker block zones
Target Rules
How to set profit targets and exit levels for maximum return potential.
- Target 1:2 risk-to-reward ratio as baseline
- Consider taking profits at next major support/resistance levels
Confluence Factors
Additional signals that strengthen BB setups and boost success rates.
- Liquidity grabs occurring before the retest
- Fair value gaps in the direction of the trade
- Higher timeframe trend alignment
- Multiple order blocks in the same area
Failure Modes
Common scenarios where breaker blocks fail and trades go against you.
- False invalidation
- No retest
- Weak zone
Common Mistakes
Typical errors traders make with BB patterns and how to avoid them.
- Trading breaker blocks without confluence
- Using inconsistent invalidation criteria
- Ignoring higher timeframe context