What is Bullish/Bearish Breaker Block & How to Find It Easily Explained. Smart Money Concepts for Beginners SMC ICT (FOREX)

Bullish and Bearish Breaker Blocks are easier to find than you think.

In this article, I will share with you very efficient price models for the identification of Order Blocks and Breaker Blocks.

You will learn

• their meaning,

• multiple examples,

• how to draw them,

• how to use them

in trading Smart Money Concepts SMC ICT.

Bearish Breaker Block Model

Let's start with an essential theory and study Bullish Trend Model & Bearish Breaker Block Formation.

Please, examine a following price model:

In a classic bullish structure where the price consistently updates Higher Highs HH and Higher Lows HH, a Bullish Order Block Zone will be the area based on the last Higher How.

I will explain how to draw that zone in the examples below.

In some instances, a Bullish Order Block Zone will fail to deliver a bullish wave. Its bearish breakout will follow after its test instead.

It will be a critical event that is called a market structure shift in Smart Money Concepts SMC ICT.

A formation of a new low will signify a violation of a bullish trend and a highly probable change of the market sentiment.

Bullish Liquidity Grab

A broken Bullish Order Block Zone will turn into a Bearish Breaker Block.

The zone from where the next bearish wave will most likely follow.

It will provide a very safe place to sell from.

Market structure shift in a bullish trend is not a random event.

It usually occurs after a test of a significant supply zone with a liquidity grab.

It can help you to predict the change of the sentiment way before it happens.

Bearish Breaker Block Example

That's an example of such a price model on GBPAUD forex pair.

We see a confirmed bullish liquidity sweep in uptrend after a test of a historic supply zone.

A bearish wave followed then and a Bullish Order Block Zone was broken.

To draw Order Block Zone, I picked:

• the level of the last higher low as its lower boundary,

• a low of a body of that candlestick as the upper boundary.

After a breakout, it turned into a Bearish Breaker Block.

A bearish continuation occurred after its test.

Bullish Breaker Block Model

Please, check this model:

In a classic bearish structure where the price consistently updates Lower Lows LL and Lower Highs LH, a Bearish Order Block Zone will be the area based on the last Lower High.

In some instances, a Bearish Order Block Zone will fail to deliver a bearish wave. Its bullish breakout will follow after its test instead.

It will be a significant event that is called a bullish market structure shift in Smart Money Concepts SMC.

A formation of a new high will signify a violation of a bearish trend and a highly probable change of the market sentiment.

A broken Bearish Order Block Zone will turn into a Bullish Breaker Block.

The zone from where the next bullish wave will most likely follow.

It will provide a very safe place to buy from.

Bearish Liquidity Grab

Market structure shift in a bearish trend is not a random event.

It usually occurs after a test of a significant demand zone with a liquidity grab.

Bullish Breaker Block Example

That's a real example of such a price model on WTI Crude Oil.

A bearish structure was violated after a test of a demand zone.

A Bearish Order Block was broken, and it turned into a Bullish Breaker Block Zone then.

Drawing a Bullish Order Block Zone, I picked

• the level of the last lower high as its upper boundary,

• a high of a body of that candle as its lower boundary.

A bullish movement followed after a deep test of that.

The Takeaway

A proper combination of structure mapping and liquidity analysis will help you to predict a market structure shirt and a breaker block creation before they happen.

The models that I shared will help you to confirm bullish and bearish breaker blocks trading Forex or any other markets with Smart Money Concepts SMC ICT.