Order block: the basic definition
An order block (OB) is the last opposing candle before an impulsive move. A bullish OB is the last bearish candle before a strong rally. Smart money laid orders there; price often returns to mitigate them.
Breaker block: when an order block fails
A breaker block is what an order block becomes after price breaks structure through it. The failed OB flips role: a bullish OB that gets violated becomes a bearish breaker.
The logic: traders who got long at the OB are now trapped. When price retraces back into the broken OB, those trapped traders exit, fueling continuation in the new direction.
Visual difference
| Concept | Formation | Role |
|---|---|---|
| Order block | Last opposite candle before displacement | Continuation/reversal zone |
| Breaker block | Order block that got mitigated and broke structure | Trend continuation zone |
How to trade order blocks
- Identify the OB on HTF (4H or 1H).
- Wait for return.
- Enter on LTF CHoCH inside the OB.
- Stop beyond the OB extreme.
- Target opposing liquidity.
How to trade breaker blocks
- Confirm BOS through the original OB.
- Wait for retest of the broken OB (now a breaker).
- Enter in the direction of the BOS.
- Stop just beyond the breaker''s extreme.
- Target the next liquidity pool in the direction of the move.
Which has the higher R:R?
Breaker blocks usually offer cleaner R:R, because they trade with confirmed trend continuation rather than guessing at OB mitigation. Order blocks have higher frequency but lower selectivity.
Common mistakes
- Confusing inside-bar candles with OBs.
- Treating an unmitigated OB as automatically tradable.
- Ignoring the HTF bias when trading either.
- Drawing the OB on the wrong candle (always use the last opposite candle before the displacement).
Gold examples
On XAU/USD, the 1H bearish OB above a recent swing high is one of the highest-probability sell zones during London-NY overlap when DXY is supportive of the move.
Where Jenvu fits
Jenvu''s Signal Engine automatically labels both OBs and breakers, plus the BOS that converts one into the other.
FAQ
Are breaker blocks more reliable? Yes — they trade with confirmed structure.
Can a breaker break again? Yes, and it becomes another OB if violated. Structure flows.
Best timeframe for OBs? 1H for intraday; 4H for swing.