Valid Breaker

Valid Breaker

what this is about: How a structure break and a strong break out of the supply/demand zone make a valid breaker block.

(in case of a supply turn demand)

For a valid breaker, wait for a supply order block to form. After it forms, wait for a downward break of structure to happen. The break of structure will, for retail traders, indicate that a CHOCH will form. It will indicate that price will go up to the supply zone & then reverse down. It is an early reversal sign for retail traders.

Then, wait for price to make a strong break above the supply zone (with no hesitation or downward pullback). The supply zone will then turn into a demand zone. This will show that the buyers overtook the sellers. That would mean that buy orders were injected and there were more buy orders than the sell orders. So, when price comes back to that demand zone, it will find leftover buy orders to push price up.

https://www.tradingview.com/x/071oZ4nu/

(in case of a demand turn supply)

For a valid breaker, wait for a demand order block to form. After it forms, wait for an upward break of structure to happen. The break of structure will, for retail traders, indicate that a CHOCH will form. It will indicate that price

https://www.tradingview.com/x/kHpOjIAQ/

will go down to the demand zone & then reverse up. It is an early reversal sign for retail traders.

Then, wait for price to make a strong break below the demand zone (with no hesitation or upward pullback). The demand zone will turn into a supply zone. This will show that the sellers overtook the buyers. That would mean that sell orders were injected and there were more sell orders than the buy orders. So, when price comes back to that supply zone, it will find leftover sell orders to push price down.