WHAT IS BREAKER BLOCK?

What is a Breaker Block?

A breaker block often forms following a significant consolidation phase, where price gathers liquidity at both support and resistance levels. This action traps buyers and sellers on either side, creating a pool of liquidity that fuels the market for a strong breakout or breakdown. During this move, any imbalances, like an unfilled Fair Value Gap (FVG), are typically left unaddressed as price moves swiftly in one direction without a retest.

While these imbalances may remain unfilled in the immediate move, they could be filled at a later point when price returns to those levels.

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