Forex glossary
Breaker Block
A breaker block in SMC terminology is a previously identified order block that price has broken through, after which the zone is considered in the opposite support or resistance role. Detailed rules vary. A chart does not verify institutional positions or re-entry.
Illustrative example
How does it work in practice?
In a hypothetical setup, 100–102 is marked as a bullish order block. Price closes at 99 and later revisits 101; the trader then considers the broken zone as possible resistance.
A case to work through
A zone after its break
A hypothetical bullish order-block zone spans 100–102; the rule requires a close below 100.
- A close at 99.5 invalidates the zone under that rule.
- A later return to 101 allows testing a resistance hypothesis at the same zone.
What follows? Mark the break and retest separately; do not assume automatic rejection.
Example boundary: Breaker definitions vary by methodology, and candles do not identify participants.
A useful distinction
Breaker Block / Order Block
An order block is the initially marked zone; a breaker describes its failure and possible change of role.
Check your understanding
Describe invalidation and retesting under an explicit rule.
Show the answer and explanation
Invalidation of the bullish 100–102 zone
The close satisfies the specified break condition.
Market data and interpretation limits
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Related terms
Sources and documentation
- LuxAlgo – order blocks and breakers
This implementer's zone and breaker conventions, not evidence of participant identity.
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