What it means
A breaker block is an order block where price has closed THROUGH the block in the opposite direction of the original signal. The block has 'broken' but on retest from the OPPOSITE side, often reacts again — former support becomes resistance (or vice versa). The reaction on the breaker retest is typically smaller than the original order-block reaction but still tradeable.
Why it matters
Breaker blocks formalize the classic 'support becomes resistance' concept within the SMC framework. They provide tradeable retest opportunities AFTER an order block has failed in its original direction, giving a second chance at the level.
How to use it
Identify order block that has been broken (price closed through it). Watch for retest from the opposite side. Enter on retest rejection in the new direction. Stop just past the breaker block. Reduce position size vs an unmitigated order block (lower expected edge).
Want a worked example or a deeper dive? Ask Rocky how this concept applies to your specific watchlist or trade idea.
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