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Order Blocks & Breaker Blocks

By LuxAlgoMar 9, 2023

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Order Blocks & Breaker Blocks plots bullish and bearish order blocks from swing points, then does what most zone tools don't: it keeps watching after price trades through. A mitigated block converts into a breaker block, the same zone with reversed polarity, where former support is expected to resist and former resistance to hold price up.

The chart makes the transition unmistakable. Live order blocks are solid, extended areas; at mitigation the zone switches to dashed borders and dual coloring, pinning the exact spot where polarity changed.

How to Trade the Order Blocks & Breaker Blocks?

  • Solid zone holds: an unmitigated order block serves as support (bullish) or resistance (bearish) for trades in the direction of the original move.
  • Zone flips to a breaker: trade the opposite reaction: a broken bullish block becomes a zone to sell into on retest, a broken bearish block a place to look for support.
  • Raise Swing Lookback: anchors zones to more significant swings when you want longer-term structure.

Enabling the polarity labels reveals where swing highs and lows printed inside each breaker historically, a study aid best used in replay mode, since those labels are backpainted, while block and breaker detection itself runs in real time.

Order Blocks & Breaker Blocks Settings

  • Swing Lookback: lookback for the swing detection that seeds each block.
  • Show Last Bullish OB: number of recent bullish order/breaker blocks kept on the chart.
  • Show Last Bearish OB: the same cap on the bearish side.
  • Use Candle Body: builds zones from candle bodies instead of full ranges for tighter areas.
  • Show Historical Polarity Changes: labels prior swing points inside breaker blocks.

Frequently Asked Questions

Free indicator

Get free access to this indicator on the platforms below.

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NinjaTrader
MetaTrader 4/5
Original indicatorBuilt in-house by LuxAlgo

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