Breaker Blocks in SMC Trading
I used to get frustrated when my order blocks broke.
I'd identify a perfect bullish order block. Price would pull back, I'd
enter… then price would drop right through my OB and stop me out. I thought: "That order block failed. It's useless now." Wrong.
When an order block breaks, it doesn't disappear. It becomes
a breaker block.
Breaker blocks are order blocks that got violated; the price broke through them instead of bouncing.
But here's the key: Once broken, they often FLIP their role.
A bullish OB that breaks becomes a bearish breaker block (resistance).
A bearish OB that breaks becomes a bullish breaker block (support).
In this guide, I'll show you:
- What breaker blocks are
- How they form (when OBs break)
- How to trade them
- Why they're often MORE reliable than regular OBs
Let's dive in.
What is a Breaker Block?
A breaker block is an order block that got broken, then flipped its role.
The Simple Definition:
Bullish Breaker Block:
A bearish order block that price broke THROUGH to the upside, which now acts as support.
Bearish Breaker Block:
A bullish order block that price broke THROUGH to the downside, which now acts as resistance.
How It's Different from an Order Block:
Order Block:
- Forms when price makes a strong move
- Acts as support (bullish OB) or resistance (bearish OB)
- Hasn't been tested or broken yet
How to Identify Valid Breaker Blocks?
Not every broken OB becomes a reliable breaker block.
Here's my validation:
Rule 1: The Original OB Must Be Valid
Before it can become a breaker block, it needs to be a proper order block first.
Check:
- Was it the last opposite candle before a strong move?
- Did it form on a higher timeframe?
- Was there structure alignment?
If the original OB was weak, the breaker block will be too.
Rule 2: The Break Must Be Strong and Clean
When price breaks through the OB, it should be decisive.
What I look for:
For a bullish breaker block (breaking a bearish OB):
- Price closes ABOVE the OB with momentum
- Ideally, breaks with 20+ pips of follow-through
- No immediate reversal back into the OB
For a bearish breaker block (breaking a bullish OB):
- Price closes BELOW the OB with momentum
- 20+ pips of follow-through
- Clean break, not a slow grind
Why:
Weak breaks (price barely closes beyond the OB) often lead to fake breaker blocks.
Price might return and the original OB role holds.
Strong breaks show conviction.
Rule 3: Align with Market Structure (MSS or Strong BOS)
The best breaker blocks form during structure changes.
Ideal scenarios:
Bullish Breaker Block:
- Forms when MSS confirms uptrend reversal
- A bearish OB from the old downtrend gets broken
- That old bearish OB becomes bullish support
Bearish Breaker Block:
- Forms when MSS confirms downtrend reversal
- A bullish OB from the old uptrend gets broken
- That old bullish OB becomes bearish resistance
Why:
Breaker blocks during reversals are powerful because they mark the "flip", where the old trend support/resistance becomes the new trend resistance/support.
Quick Validation:
✅ Was the original OB valid?
✅ Did price break through with strong momentum (20+ pips)?
✅ Does this align with an MSS or strong structure change?
If all 3 = YES → Valid breaker block
How to Trade Breaker Blocks?
Breaker blocks give me some of my highest win-rate trades.
Why? Because I'm entering AFTER the market has shown its hand—the old level broke,
structure shifted, and now I'm trading the flip.
Here's my exact process:
Step 1: Identify the Original Order Block
Before a breaker block can form, there must be a valid order block.
What I look for:
- Clear bullish or bearish OB
- Formed on H1 or higher timeframe
- Aligned with the previous trend
I mark this zone on my chart and label it "Potential Breaker."
Step 2: Wait for the Break
I don't predict breaks. I wait for them to happen.
For a bullish breaker block (breaking a bearish OB upward):
Price must:
- Close ABOVE the bearish OB with a strong candle
- Move 20+ pips beyond the OB (shows commitment)
- Ideally, this happens during or after an MSS
For a bearish breaker block (breaking a bullish OB downward):
Price must:
- Close BELOW the bullish OB with a strong candle
- Move 20+ pips beyond the OB
- Preferably during/after an MSS
Important:
If price just barely closes beyond the OB (2-5 pips), I don't count it. That's
a weak break and often leads to fake-outs.
I need CONVICTION, a strong close with follow-through.
Step 3: Confirm the Structure Shift
This is critical.
Breaker blocks work best when they coincide with market structure changes.
Questions I ask:
- Did CHoCH occur? (Warning sign)
- Did MSS confirm the reversal? (Full confirmation)
- Is the old trend clearly broken?
If YES to all three, the breaker block has maximum probability.
The Pattern Summary:
- OB forms in old trend
- Price breaks through OB (20+ pips momentum)
- Structure shifts (CHoCH + MSS)
- Wait for pullback to the broken OB (now a breaker block)
- Enter in the NEW trend direction
- Stop beyond the zone
- Target next structure
That's my complete breaker block strategy.