Breaker Blocks

What are Breaker Blocks?

A Breaker Block forms when a previously valid Order Block fails, and the market later reclaims that zone as support or resistance in the opposite direction. This event often occurs during a Change of Character (CHOCH) or after a liquidity sweep, marking a clear shift in institutional order flow. The Breaker Block becomes a structural reversal zone, where trapped traders from the old bias provide liquidity for the new one.

The logic behind a Breaker Block is rooted in market psychology. When a trend reverses, the last defended institutional zone (the OB) gets violated. Retail traders often see this as a breakout and enter late in the wrong direction. Institutions then use that liquidity to enter in the opposite direction, converting the old OB into a Breaker Block. This is why these zones are often followed by rapid and sustained moves.

In practice, Breaker Blocks can serve as confirmation tools for traders looking to validate structural shifts. They are frequently used after BMS events to confirm that the market’s intent has changed. A retest of the Breaker Block followed by displacement provides one of the cleanest reversal setups in institutional trading.

From a broader perspective, Breaker Blocks illustrate how institutional algorithms transition from one phase of liquidity collection to another. They mark the precise moment where prior liquidity engineering concludes and a new directional cycle begins. When combined with other HuntsPIP modules like the Volume Anomaly Engine or Session Range Breakout Engine, Breaker Blocks give traders a clear, data-driven understanding of reversal strength.

How to Configure Breaker Block?

Show Labels - Toggle to show/hide labels.

Breaker Block Type - Choose between Wick or Body to define how the Breaker Block zone is calculated.

• Wick - Breaker Block extends from the candle's high to low.
• Body - Breaker Block extends only from open to close (candle body only). This is a more conservative approach with tighter zones.

Mitigation Type - Choose how strictly the indicator confirms that a block has been mitigated (filled).

• Close Inside - Block is mitigated when candle closes inside the block.
• Wick Inside - Block is mitigated when the wick (high/low) touches inside the block.
• Close > 50% - Block is mitigated when the candle closes past the mid-point (50%) of the block.
• Wick > 50% - Block is mitigated when the wick (high/low) crosses the mid-point (50%) of the block.
• Close Outside -Block is mitigated only when the close happens fully outside the opposite side of the block.
• Wick Outside - Block is mitigated only when the wick crosses (high/low) outside the opposite side of the block.

Colors - Set of colors for the three block states

• Bullish Breaker Block - Applied to bullish blocks that are active.
• Bearish Breaker Block - Applied to bearish blocks that are active.
• Mitigated Breaker Block - Applied to blocks that have been filled.

Max Breaker Block - Controls how many breaker blocks are to be displayed on screen.

Distance from LTP - Sets how far the Breaker Block Boxes extend into the future from the current bar.