Breaker POI

Key Concepts in Breaker POI:

1. Order Block (OB):

   • Represents a key price area where large institutional orders were placed.
   • Price often reacts to these levels, either reversing or continuing.

2. Shift:

   • A change in market structure where price breaks the prior trend or key level, indicating a potential reversal.

3. Breaker:

   • A former order block that gets violated as price moves past it.
   • It becomes a breaker zone when price flips to the opposite side and retests it as support (for buy setups) or resistance (for sell setups).

4. Break of Structure (BOS):

   • A significant price movement breaking a key level, confirming a potential trend continuation or reversal.

Trade Setup Ideas:

1. Buy Breaker POI Setup:

• Conditions:
  • Price breaks below an order block and then shifts direction upward.
  • A bullish break of structure (BOS) occurs, flipping the order block into a support zone.
• Entry:
  • Enter when the price retests the breaker zone as support.
• Stop Loss:
  • Place the stop loss slightly below the breaker zone.
• Take Profit:
  • Target the next resistance level or high created after the BOS.

2. Sell Breaker POI Setup:

• Conditions:
  • Price breaks above an order block and then shifts direction downward.
  • A bearish BOS occurs, flipping the order block into a resistance zone.
• Entry:
  • Enter when the price retests the breaker zone as resistance.
• Stop Loss:
  • Place the stop loss slightly above the breaker zone.
• Take Profit:
  • Target the next support level or low created after the BOS.
    

    Steps to Trade Breaker POIs:

    1. Identify Market Structure:

       • Look for trends and key levels such as order blocks and previous highs/lows.

    2. Wait for the Shift and BOS:

       • Observe a clear violation of the order block and market structure change.

    3. Mark the Breaker Zone:

       • Highlight the order block that was broken and wait for a retest.

    4. Confirmation and Entry:

       • Use candlestick patterns, volume spikes, or momentum indicators to confirm entry at the breaker zone.

    5. Risk Management:

       • Always use stop losses and calculate risk-reward ratios before entering trades.