Breaker Blocks for MT4 and MT5 is a smart money indicator that displays failed order blocks, so called Breaker Blocks. Let’s dive into the intricacies of the Breaker Blocks Indicator specifically tailored for MT4 charts and see how it can bolster trading tactics.
Integrated with visual cues and signal alerts, the indicator focuses on identifying price action around potential support and resistance levels, giving traders a structured method to assess potential trade entry and exit points. Its utility lies in the way it organizes data around market structure shifts and breaker block formations. However, effectiveness depends largely on how it is integrated into broader trading strategies.
How the Breaker Block Indicator Functions
The Breaker Block indicator is designed to incorporate multiple layers of technical analysis, including the detection of Market Structure Shifts (MSS). These shifts are used to signal the development of new breaker blocks marked as +BB for bullish blocks and -BB for bearish ones.
When price action revisits these areas, an entry signal indicated by an orange mark can be generated. This is where the alignment of bullish or bearish structure and the retest of the breaker block intersect, making it a potentially relevant event for considering a trade.
The tool also defines premium and discount zones, PD Arrays that serve as price objectives or zones of interest. For example:
- Discount PD Arrays could be potential targets for short positions.
- Premium PD Arrays may be considered as targets for long positions.
The indicator includes alerts for signal highlights, aiding in real-time decision making. Traders can configure these alerts to match their preferences and strategy. You can set Block Breaker Indicator to send you a signal alert via email, SMS, or platform pop-ups.
This Smart Money Concept Indicator isn’t a standalone trading indicator System. Still, it can be very useful for your trading as additional chart analysis, to find trade exit position(TP/SL), and more. While traders of all experience levels can use this system, practicing trading on an MT4 demo account can be beneficial until you become consistent and confident enough to go live. You can open a real or demo trading account with most Forex brokers.
What Are Breaker Blocks?
Breaker blocks are distinct from regular order blocks. They are order blocks that did not maintain their status instead of the price respecting the order block, it penetrates straight through after taking liquidity. In simpler terms, a breaker block is the aftermath of a stop hunt. Stop hunts usually occur when the ‘smart money’ breaches a short term high or low, then rapidly reverses into the underlying trend. Once the price inverts and retraces into the breaker block, it becomes a hotspot for potential trade entries.
The Breaker Blocks with Signals indicator utilizes this concept by highlighting zones where such formations occur and projecting them forward for a possible price reaction. This includes the classification of bullish and bearish breaker blocks based on a set of technical guidelines:
Bullish Breaker Block
This type of breaker is identified as the last upward closing candle in a swing low just before the price marks a higher high. Its validation comes into play when stops below a preceding swing-low are eliminated, and the price reverses, breaking above the swing-high containing the breaker candle.
- The candle’s opening price must lie within the breaker block.
- The candle must close above the block’s upper boundary.
- Price should not fall back below the average of the breaker block after a breakout.
Bearish Breaker Block
Conversely, a bearish breaker represents the last downward closing candle in a swing high before the price drops to a lower low. This breaker becomes valid when stops located above a preceding swing-high are cleared, causing the price to invert and break below the swing-low that houses the breaker candle.
- The candle’s opening price should fall within the breaker block.
- The candle must close beneath the block’s lower boundary.
- Price action must not rise above the average after an initial breakout.
1ms Latency to Your Broker
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Max Leverage
Small Accounts
Platforms
1:2000
Yes ✅ (Cent)
MT4, MT5
No Commission
Up to 90% profit splits
800+ Financial Markets
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Usage Considerations and Strategy Adaptation
One aspect traders often consider is the timing of the retest. The indicator performs with a stricter logic: once a breaker block is confirmed, an entry signal is ideally triggered within 5 to 10 bars. Waiting longer beyond 20 bars may result in reduced validity or diminished clarity of the signal.
Another mechanic worth noting is the invalidation rule. If the closing price goes beyond 50% of the breaker block post-confirmation, the signal is considered invalid. Additionally, the option to disable the setting “Stop at first break of center line” allows users to scan for continuing setups even if the first midline breach occurs, potentially expanding the opportunity set.
Retests of blocks narrate the broader price reaction story, but the quality of signals and the reliability of breaker blocks can depend on surrounding market context, volume, and prevailing trends. While the tool provides a framework, its utility is not absolute it requires discretion and may not align with every market condition or trader’s methodology.
Conclusion
The Breaker Blocks with Signals indicator organizes complex price behavior into readable components and signal based zones. With visual marking of breaker blocks, integration of MSS, and clear entry/exit guidelines, it introduces a methodical approach to technical trading. Nonetheless, it functions best as part of a broader strategy rather than a standalone decision making tool. Traders are encouraged to interpret its outputs in conjunction with other forms of analysis and adapt settings based on their individual risk tolerance and timeframes.
Thanks admin will test it
Did you test it ?
where to download the indicator, could not locate on this page
this not even working
Works if you are a SMC Trader
[…] Order Block Breaker […]
I can’t find where to download, pls help