Market Structure & Liquidity · Entry 52 of 71

What Is a Breaker Block?

Failed order blocks that flip into continuation zones

Core Definition

A Breaker Block is a failed Order Block that price later uses as a continuation zone in the opposite direction. It forms when an Order Block does not hold and market structure shifts through it with strong momentum.

Key Mechanics

1. Occurs after liquidity is taken and structure is broken.
2. A previously respected Order Block fails to cause trend reversal.
3. The broken Order Block "flips" its role and acts as a new support or resistance zone. Breaker Blocks help traders understand that failed zones are not useless; they provide excellent high-probability zones aligned with the updated market direction.