All language subtitles for 03-Breaker Blocks - A-Z Guide Episode 3 - English

hello everyone hope you're doing all

right welcome back this is the third

video and this video we are going to

touch on Breaker blocks breaker blocks

are often confused with mitigation

blocks last episode we talked about

mitigation blocks and the type of

pattern the mitigation block has now the

mitigation block has a swing failure

pattern now the breaker block as I've

mentioned in the last episode as well

are the breaker pattern obviously it's

already a name breaker pattern and swing

failure pattern

so swing failure pattern is for the

mitigation block and a breaker pattern

is for the breaker block so if we take

our line tool right here let's say we

have an up move right here

we have a down move

then we have another up move takes out

this high

then we have another down move takes out

this low to the high and low gets taken

then we move back into the low of this

bearish breaker block

and then we continue lower

that's a breaker pattern and of course

this is a bearish breaker pattern so the

important thing for us to understand is

we are taking a swing high again if you

don't know what a swing high is yet

we'll touch on it later we are taking a

swing high and we are taking a swing low

and then we move back into that range

this down candle if it's a bearish brake

block we use the down candle and then we

drop lower

now

if we want to draw a bullish breaker

block it would look something like this

so we have our low we create some sort

of Swing High we take out the swing low

we move back above the swing High

the high right here the up candle gets

traded back into and then we continue

higher that's a breaker block

now can you see the difference between a

breaker block and a mitigation block

the mitigation block would be somewhere

around here

because that's your swing failure

pattern

first breaker then after we might get a

swing failure pattern and the logic

behind a breaker block is pretty similar

to the mitigation block if we are

coming down right here and there are

people buying this leg up

so once we drop down below this low

people who bought here get a chance to

mitigate those orders

so they get a chance to release

themselves price is offering fair value

after they had a chance to mitigate

those orders price will drop off again

now let's dive into a chart and give you

some real-time examples as well

alright so the first example right here

is a bearish example we were coming off

of some sort of weekly premium array now

I'm going to basically emphasize more on

confirming a higher time frame premium

and discount arrays

because a mitigation block an order

block a breaker block every PD array is

useless if you don't

have a higher time frame narrative a

higher time frame bias so we need to

have a higher time frame PD array

and then in the lower time frame because

the the same stuff happens on the lower

time frame on the lower Terrapin we can

confirm that PD array with another

breaker block a mitigation block an

order block

Etc

so weekly premium rate right here we are

on the one hour time frame

and you can see the pattern right here

we are dropping lower

creating this swing High

right here a swing low we take the swing

High immediately drop down below and we

take this swing low as well then this

right here

this Wick that's overlapping with the

fair value Gap this down candle becomes

our bearish breaker block now the entire

breaker block is the consecutive down

candle so this is your entire breaker

block just like an order Block it's the

consecutive Down Candles

for mean threshold

it would be this right here the bodies

of the candles

and these ideally shouldn't get

disrespected now there's a thing with

means wrestled and I get this question

very often mean threshold if it gets

disrespected like this just a little

close Above This doesn't mean that the

whole ID of these Breakers invalidated

the 50 the mean threshold is just an

early indication that's all it is but

the bearish arguments here are still

stronger than the bullish arguments so

there's no reason here to think if price

closes just a little bit above it then

the whole ID is invalidated that

wouldn't make sense so remembered it

it's not something set in stone it's

just an early indication now we have the

pattern obviously we have this breaker

pattern we take the low right here

because it's a barrier breaker block and

then next step is something overlapping

so as you can see there is a fair value

Gap overlapping now this is often

referred to as a unicorn setup a unicorn

setup is a breaker and a fair value Gap

overlapping with each other so at this

low there's a fair value Gap overlapping

with the breaker

that makes it even stronger just like we

talked about in the previous episode if

there is another PD array overlapping

with another PD array or there's

something nested inside of here so here

might be a very low time frame or block

then that makes the PD array even

stronger because then you have multiple

confluences instead of having one

and then you can see we move away

eventually now what happens here

this is a mitigation block

swing fill your pattern

it's coming back to this low this Wick

is overlapping with a volume imbalance I

would count that as a very Gap

of course do your own testing see what

you prefer and then after touching this

mitigation block it drops off again this

is your swing through your pattern so we

had our breaker pattern right here then

here we have our swing failure and this

creates a mitigation block

now again remember the steps and again a

breaker block is strong especially with

an overlapping for feiger if your bias

is correct so if you know where price is

trading to obviously obviously

everything will be strong if we know

where it trades to but without a higher

time frame context behind anything

you can have a hundred one minute time

frame breaker blocks but they will not

be strong if there is no context there's

no narrative there's no higher time

frame bias that's very important for you

to understand

and that's where a lot of people

struggle with and it's relatable as well

because I've been there as well in the

beginning

you're just trading the one minute and

you're trading every break block you see

without any higher time frame context

whatsoever and you just get blindsided

and you're thinking

why isn't it working well maybe you're

not even looking at the higher time

frame if we know the orders are on the

high time frame why do we ignore the

higher time frame that's stupid alright

so let's move on to the next example

right here we can take a look at the

monthly actually

and if we take a look at the monthly

right here we can see we are coming off

of this

monthly order block

if we then drop down into the four hour

so that's already our context at monthly

order block that's interesting to see

see how price is all fractal it's all

fractal

so first we have some kind of move right

here but let's just ignore this bit

right here and let's move on to this can

you spot the breaker

this last up move we create a swing high

and we take out this swing low

we Wick below it we have an immediate

displacement higher

taking out the swing high right here

then this right here

this little body the up candle

is our breaker the wick isn't

overlapping the top of the wick isn't

overlapping with any of your value gaps

so we take the body right here we trade

back into it and we displays again

so we have our pattern we take the high

and what do we have an overlapping

verify Gap making it even stronger

and we have our bias already based off

of the monthly

so we have a monthly bias or for our

lines with that bias we have a breaker

block right there

then if we drop into the lower time

frame right in this section

we can see the exact same thing

it's all fractal

so if we take a look at this right here

this is our four hour breaker coming

into a monthly order block four hour

breaker what are we seeing right here

we're coming into this breaker for our

breaker on the five minute time frame

we're moving higher

this Hive fails to take out this low

what is this high

after we take out this high

right here

this high is now

not a breaker a mitigation block

this is your swing fill your pattern

breaker pattern swing fear pattern these

are the only two patterns

that are in the market that will tell if

the market is reversing or not it's

either a swing for your pattern or a

breaker pattern these are the only

patterns so let me write that down for

you so it's either a swing failure

pattern

the mitigation block or a breaker

pattern a breaker block that's all you

need to know how to spot when a market

is reversing

these two patterns are the only reversal

patterns so right here this is a swing

failure pattern

what is overlapping with this mitigation

block

we have this Gap this volume imbalance

below it is a little fair value Gap

and you can see we are pushing higher

after that

see how this video already gave a lot of

information and the breaker is not that

difficult to spot just train your eyes

to see it and see it having it in the

right context that's important see how

we just had this order block

we only knew about order block

breaker block mitigation block and we

just add a trade opportunity right here

only by knowing order block mitigation

Block Breaker block

the only three things we talked about so

far

and we just had a trade opportunity

right here

see what I'm saying you don't need a lot

to be profitable here the order block

mitigation Block Breaker block already

gave your bias

you don't need to know a lot to be

profitable

now last example right here

we're coming off of this previous order

block like we talked about it's

overlapping with a mitigation block

and right here

we are

taking this swing high so we have the

pattern we have a swing low swing High

we take the swing low take the swing

High bullish breaker as soon as we take

so we don't need to close above it of

course that's a nice Confluence to have

as soon as we Wick above this high

this breaker block gets confirmed

so we can already expect higher prices

as soon as we trade back into it here we

can already expect higher prices

so pattern a high overlapping

verify again see how we sting into the

forefather Gap right there

and push higher can you see how these

three PD arrays the order block

mitigation block break block

already gives you so much context

alright now for you please go ahead and

study the breaker block see how order

block mitigation block and breaker

blocks already give a lot of context

already can give you your bias and then

I'll see you in the next video on Friday

alright thank you

[Music]

foreign