Breaker Blocks [ITA]
🟠 OVERVIEW
Breaker Blocks marks order blocks that failed. Price broke through the zone, so it now acts from the opposite side. Every retest is scored held or failed on the bar it resolved, and the running hold rate for the symbol you are looking at sits in the corner.
Breaker blocks are drawn everywhere. The claim attached to them is that a broken block flips and holds when price comes back to it. That sentence appears in every description of the concept and almost never with a number next to it. This one counts.
🟠 CONCEPTS
* Breaker - An order block that price traded through. The zone is taken from the last opposite candle before the structure break, measured from its body to its wick.
* Structure Break - A close beyond a swing point that was confirmed by Swing Lookback bars on each side.
* Retest - Price trading back into the zone after the break.
* Held - Price closed beyond the far side of the block by Follow-Through within Bars To Decide. Anything else is a fail, including price that touched the zone, reacted, and went nowhere.
* Left Behind - A block price has walked away from by more than Drop Breaker Left Behind is removed. A level price left months ago is not a level, it is a stripe across the chart.
🟠 FEATURES
🔹 Bullish and bearish breakers drawn as zones from the origin candle, extended forward while they are live
🔹 Every retest scored and marked Held or Failed at the bar it resolved, so the count can be read against the chart rather than taken on trust
🔹 A running hold rate in the corner, split bullish and bearish and combined, with the raw counts
🔹 Blocks price has left far behind are dropped instead of extending forever
🔹 All distances measured in ATR, so one setting works on a 5 dollar stock and a 700 dollar index
🔹 Alerts for a breaker forming and for a retest, each side separately
🟠 HOW TO USE
Read the corner first. It says how often, on this symbol and timeframe, a retested breaker actually followed through. A rate near one hundred means the test is too easy and the number is not telling you anything.
The definition matters more than the number. A retest counts as held only if price then closes beyond the far side of the block. Price that touched the zone and stalled is a fail. A test that a reaction alone can pass would pass almost every time.
Follow-Through and Bars To Decide set how strict that is. Raise Follow-Through and the rate falls, because you are asking for a bigger move. The defaults are half an ATR within ten bars.
A breaker is not a signal on its own. It marks a zone where price has already shown it can trade through, and the label says what happened the last time it came back.
🟠 WHAT I MEASURED
QQQ daily: 63% of 258 retests held.
NVDA 15m: 67% of 543 retests held.
The split between bullish and bearish blocks was 71 against 52 on QQQ and 69 against 65 on NVDA, so that gap belongs to the symbol and not to the concept. Two thirds is the figure that held across both.
🟠 CONCLUSION
Drawing the zone is the easy part. Whether it holds when price comes back is a number, it is different on every symbol, and it depends entirely on what you are willing to call holding.
Breaker Blocks marks order blocks that failed. Price broke through the zone, so it now acts from the opposite side. Every retest is scored held or failed on the bar it resolved, and the running hold rate for the symbol you are looking at sits in the corner.
Breaker blocks are drawn everywhere. The claim attached to them is that a broken block flips and holds when price comes back to it. That sentence appears in every description of the concept and almost never with a number next to it. This one counts.
🟠 CONCEPTS
* Breaker - An order block that price traded through. The zone is taken from the last opposite candle before the structure break, measured from its body to its wick.
* Structure Break - A close beyond a swing point that was confirmed by Swing Lookback bars on each side.
* Retest - Price trading back into the zone after the break.
* Held - Price closed beyond the far side of the block by Follow-Through within Bars To Decide. Anything else is a fail, including price that touched the zone, reacted, and went nowhere.
* Left Behind - A block price has walked away from by more than Drop Breaker Left Behind is removed. A level price left months ago is not a level, it is a stripe across the chart.
🟠 FEATURES
🔹 Bullish and bearish breakers drawn as zones from the origin candle, extended forward while they are live
🔹 Every retest scored and marked Held or Failed at the bar it resolved, so the count can be read against the chart rather than taken on trust
🔹 A running hold rate in the corner, split bullish and bearish and combined, with the raw counts
🔹 Blocks price has left far behind are dropped instead of extending forever
🔹 All distances measured in ATR, so one setting works on a 5 dollar stock and a 700 dollar index
🔹 Alerts for a breaker forming and for a retest, each side separately
🟠 HOW TO USE
Read the corner first. It says how often, on this symbol and timeframe, a retested breaker actually followed through. A rate near one hundred means the test is too easy and the number is not telling you anything.
The definition matters more than the number. A retest counts as held only if price then closes beyond the far side of the block. Price that touched the zone and stalled is a fail. A test that a reaction alone can pass would pass almost every time.
Follow-Through and Bars To Decide set how strict that is. Raise Follow-Through and the rate falls, because you are asking for a bigger move. The defaults are half an ATR within ten bars.
A breaker is not a signal on its own. It marks a zone where price has already shown it can trade through, and the label says what happened the last time it came back.
🟠 WHAT I MEASURED
QQQ daily: 63% of 258 retests held.
NVDA 15m: 67% of 543 retests held.
The split between bullish and bearish blocks was 71 against 52 on QQQ and 69 against 65 on NVDA, so that gap belongs to the symbol and not to the concept. Two thirds is the figure that held across both.
🟠 CONCLUSION
Drawing the zone is the easy part. Whether it holds when price comes back is a number, it is different on every symbol, and it depends entirely on what you are willing to call holding.
Pine Script developer & trader. I build clean indicators - Smart Money Concepts, scanners, risk tools. ITAtradingtools.com
إخلاء المسؤولية
لا يُقصد بالمعلومات والمنشورات أن تكون، أو تشكل، أي نصيحة مالية أو استثمارية أو تجارية أو أنواع أخرى من النصائح أو التوصيات المقدمة أو المعتمدة من TradingView. اقرأ المزيد في شروط الاستخدام.
Pine Script developer & trader. I build clean indicators - Smart Money Concepts, scanners, risk tools. ITAtradingtools.com
إخلاء المسؤولية
لا يُقصد بالمعلومات والمنشورات أن تكون، أو تشكل، أي نصيحة مالية أو استثمارية أو تجارية أو أنواع أخرى من النصائح أو التوصيات المقدمة أو المعتمدة من TradingView. اقرأ المزيد في شروط الاستخدام.