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Thread on Breaker Blocks & How to Use Them🧵
Bullish Breaker (+BRK) vs Bearish Breaker (-BRK)
♥️&🔁
Bullish Breaker (+BRK) vs Bearish Breaker (-BRK)
♥️&🔁
Definition of a Bullish Breaker Block:
🔸Bullish Breaker (+BRK): is a bullish range (up-close candle) in the most recent swing high prior to an old low being violated.
🔸In simple terms this is the break + retest once there's a bullish market structure shift.
🔸Bullish Breaker (+BRK): is a bullish range (up-close candle) in the most recent swing high prior to an old low being violated.
🔸In simple terms this is the break + retest once there's a bullish market structure shift.
The psychology behind the +BRK is that the sellers that sold the high and later see this same swing high violated, they will look to mitigate the loss. When price returns back to the swing high that was broken (mss) this is where you want to consider going long.
What to look for with Bullish Breaker Blocks:
1. Raid on Liquidity or POI
2. Market Structure Shift up
3. The bodies of the up-close candles from the bullish range (green line) becomes the +BRK
4. Price retests the +BRK then runs to the DOL
The +BRK forms once there is a MSS.
1. Raid on Liquidity or POI
2. Market Structure Shift up
3. The bodies of the up-close candles from the bullish range (green line) becomes the +BRK
4. Price retests the +BRK then runs to the DOL
The +BRK forms once there is a MSS.
Definition of a Bearish Breaker Block:
🔸Bearish Breaker (-BRK): is a bearish price range (down-close candles) in the most recent swing low prior to an old high being violated.
🔸In simple terms this is the break + retest once there's a bearish market structure shift.
🔸Bearish Breaker (-BRK): is a bearish price range (down-close candles) in the most recent swing low prior to an old high being violated.
🔸In simple terms this is the break + retest once there's a bearish market structure shift.
The psychology behind the -BRK is that the buyers that buy this low and later see the same swing low violated, they will look to mitigate the loss. When price returns back to the swing low that was broken (mss) this is a setup where you want to consider going short.
What to look for w/ Bullish Breaker Blocks:
1. Raid on Liquidity or POI
2. Market Structure Shift down
3. The bodies of the down-close candles from the bearish range (red line) becomes the -BRK
4. Price retests the -BRK then runs to the DOL
The -BRK forms once there is a MSS
1. Raid on Liquidity or POI
2. Market Structure Shift down
3. The bodies of the down-close candles from the bearish range (red line) becomes the -BRK
4. Price retests the -BRK then runs to the DOL
The -BRK forms once there is a MSS
I mainly use the +BRK as an entry model however it can be used as a POI/PD Array as well. Here are examples of Bullish Breaker Blocks. Entry here is to wait for raid + mss then place buy/sell orders inside the BRK to target BSL/SSL. Execution is typically on M1-M15 TF.
Here are entry model examples of bearish breaker blocks (-BRK) being used:
Important to pay attention to the bodies of the candles more but for breaker blocks you include wicks of the candle cause sometimes price will only retest the wick and not the body.
Important to pay attention to the bodies of the candles more but for breaker blocks you include wicks of the candle cause sometimes price will only retest the wick and not the body.
High Probability Example
✅Liquidity raid on SSL
✅MSS + BOS + Displacement
✅SMT Divergence for confluence
✅+BRK has a big body
✅Price does not close below the +BRK
✅Bullish reaction off the +BRK
✅Takes out BSL for DOL
✅Liquidity raid on SSL
✅MSS + BOS + Displacement
✅SMT Divergence for confluence
✅+BRK has a big body
✅Price does not close below the +BRK
✅Bullish reaction off the +BRK
✅Takes out BSL for DOL
Low Probability Example
👎EQL was left so no raid on liquidity
👎Because EQL was left retail get trapped from inducement thinking it's a mss
👎Price does not respect the +BRK as it closed below it
👎The +BRK turns into resistance then makes leg lower to take out the EQL at SSL
👎EQL was left so no raid on liquidity
👎Because EQL was left retail get trapped from inducement thinking it's a mss
👎Price does not respect the +BRK as it closed below it
👎The +BRK turns into resistance then makes leg lower to take out the EQL at SSL
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