Breaker Blocks & Reversal Candles on TradingView - Free - [TFlab]

The Breaker Block indicator is a powerful level-based tool created based on the core principles of the ICT trading style. Breaker Block zones are critical for identifying potential trend reversals and optimizing trade entries. They are effective in helping traders recognize significant support and resistance zones.
Breaker Blocks are essentially broken Order Blocks that adopt a new, reversed role after the price retraces back to them.
You can access the Indicator from this link:
https://tradingfinder.com/products/i...ersal-candles/

You can access the Indicator on the TradingView website:
https://www.tradingview.com/script/i...ersal-Candles/



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Overview of the Indicator
Understanding and utilizing the Breaker Block concept allows traders to analyze the behavior of institutional investors and refine their trading strategies. These zones are crucial points for price retracement due to their high concentration of liquidity.

Bullish Breaker Block

1. A bearish Order Block is broken through by the price and subsequently transforms into a Bullish Breaker Block.
2. As shown in the 15-minute price chart of Cardano (ADA), once the price retraces back to this new Bullish Breaker Block (typically marked in green), it creates an excellent opportunity for initiating buy trades.
3. The indicator also highlights a Reversal Candle within this zone, providing additional confirmation.

Bearish Breaker Block

1. A bullish Order Block is broken by the price and consequently becomes a Bearish Breaker Block.
2. Based on the 5-minute price chart of the AUD/USD currency pair, a price retracement to this Bearish Breaker Block (marked in red) provides a suitable opportunity for entering sell trades.

Indicator Settings
The indicator provides several customizable settings:

1. Pivot Period: Sets the look-back period for identifying pivot points, with a default value of 2.
2. Breaker Block Validity Period: Determines the duration for which a Breaker Block remains active.
3. Mitigation Level OB: Allows adjustment of the specific reaction level of the Order Block.
4. Breaker Block Refinement: Offers options for selecting the type of Breaker Block to display.

Conclusion
The Breaker Block and Reversal Candles indicator is an invaluable tool on TradingView, specifically designed around the key concepts and reversal zones of the ICT (Inner Circle Trader) trading style.
The zones highlighted by this indicator are areas with high potential for significant price reversals. It is particularly well-suited for traders who utilize price action, ICT, and Smart Money trading strategies.