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.

  1. A close at 99.5 invalidates the zone under that rule.
  2. 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.

What does a 99.5 close establish under this 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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Sources and documentation

The example illustrates the mechanism. Check current account conditions and instrument specifications with the provider.

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