Best ICT Breaker Block Trading Strategy For FREE

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Dear Trader

Today we talking about a ICT Breaker Block trading strategy. According to the Inner Circle Trader (ICT), a breaker block is essentially a failed order block that causes a substantial change in market liquidity. This shift has the potential to completely alter the market structure, transitioning it from a bullish outlook to a bearish one or vice versa. When an order block fails, it significantly impacts the current market outlook and can provide valuable insights into future market movements.

To trade ICT breaker blocks, follow these steps:

1. Analyze market structure shifts and price movements to understand whether the market has broken an order flow. Recognizing the trend change sets the stage for identifying potential breaker blocks that align with the new market dynamics.

2. A breaker block is essentially a failed order block that signals a shift in market momentum. It is usually identified after a strong price movement, where the market fails to sustain its direction and creates a reversal pattern. This failed order block now assumes an opposite role after the trend has changed, similar to how support levels tend to become resistance levels after the price has breached these levels.

3. Once a breaker block is identified, the next expectation is for the price to return to this level. This retest of the breaker block is a crucial phase. A return to the breaker block often signals a consolidation phase before the market decides its next move.

4. Wait for confirmation and enter a position: Before taking any position, it's essential to wait for confirmation within the breaker block. Confirmation can come in various forms, such as a specific candlestick pattern, a change of character at the breaker block level, or other technical indicators aligning with the expected move. Once confirmation is received, traders can confidently enter a position that aligns with the new market trend, whether it's going long or short.

When trading the breaker block strategy, consider the following:

- Identify the type of breaker block (bullish or bearish) and align it with displacement or fair value gaps.

- Determine stop losses based on the breaker block's characteristics.

- Analyze projections and use top-down examples to better understand the strategy's application.

- Utilize the Unicorn Model to understand the market's behavior and make informed trading decisions

Remember, no strategy is foolproof, and it's important to use sound risk management practices when trading. Always consider your level of experience in investment objectives, and seek independent financial advice if necessary.

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