Breaker Blocks & Reversal Candles Indicator on TradingView - free - [Tradingfinder]

The Breaker Block Indicator (Breaker Block) is a powerful tool based on concepts of ICT (Inner Circle Trader) trading style. Breaker Block zones are critical for trend reversals and trade entries and help traders identify support and resistance zones.

Breaker Blocks are essentially broken Order Blocks that play a different role after the price retraces to them.

Indicator Specifications

Bullish Breaker Block

Based on the 15-minute price chart of Cardano (ADA), a bearish Order Block is broken by the price and turns into a Bullish Breaker Block. As shown in the image, the price retraces to the Bullish Breaker Block (marked in green), creating a suitable opportunity for entering buy trades. The small green arrow also identifies the Reversal Candle.

Bearish Breaker Block

According to the 5-minute price chart of the AUD/USD currency pair, a bullish Order Block is broken by the price and turns into a Bearish Breaker Block. As shown in the image, the price retraces to the Bearish Breaker Block (marked in red), providing a suitable opportunity for entering sell trades.

Indicator Settings

• Pivot Period: Sets the look-back period for pivot points, with the default value being 2;
• Breaker Block Validity Period: Defines how long the Breaker Block remains valid;
• Mitigation Level OB: Adjusts the reaction level of the Order Block;
• Breaker Block Refinement: Allows choosing the type of Breaker Block.

Conclusion

The Breaker Block and Reversal Candles Indicator is an advanced tool based on the ICT trading style's key concepts and retracement zones. The zones plotted by the indicator highlight areas with high potential for price retracement. This indicator is especially suitable for traders employing price action strategies, including ICT and Smart Money.