The Trader’s Ledger.

Order blocks and breaker blocks explained, with examples

By Tris (Stormtrader)  ·  13 October 2026  ·  7 min read

Order blocks are where big players are thought to have placed large orders before a strong move. Breaker blocks are order blocks that failed, and they can be even more useful. Here's how to find both, and how to avoid the most common mistake: marking every candle as an order block.

What is an order block?

An order block is the last opposite-colour candle before a strong move that breaks structure:

The idea is that large orders were placed in that candle, and some were left unfilled. When price returns, those orders can push it away again.

last down candle BOS RETEST TARGET: impulse highBULLISH ORDER BLOCKSTOP beyond the block
A bullish order block: the last down candle before a rally that breaks structure. Price later returns to it and bounces. The stop goes beyond the block.

What makes an order block valid?

Not every down candle before an up move counts. Check three things:

  1. Displacement: the move away from the block was strong and fast, ideally leaving a fair value gap.
  2. Break of structure: the move broke the last swing. No break, no order block.
  3. Untested: price hasn't been back to it yet. The first return is the one that counts.

How to trade an order block retest

What is a breaker block?

A breaker is an order block that failed. Price sweeps liquidity, then smashes straight through the block instead of bouncing. When price comes back to that block from the other side, the old support often becomes resistance (or the other way round).

SWEEP RETEST STOP beyond the sweepBEARISH BREAKERTARGET: sell-side liquidity
A bearish breaker: price sweeps the high, then breaks down through the old bullish order block. The retest of that block from below is the entry, with the stop beyond the sweep.

How to trade a breaker

Order block vs breaker: which is better?

A breaker needs more to happen (a sweep, a failed block, a break and a retest), so it appears less often, but when it does, the story behind it is clearer. Many traders find breakers have the better win rate and order blocks the more frequent opportunities. Your journal is the only way to find out which is true for you.

Order blocks or breakers: which pays you?

Both are setup cards in The Trader’s Ledger. Log each trade under the right one, and your Performance tab shows which actually makes you money. £19, one payment.

Get The Trader’s Ledger

On MetaTrader, TTL Smart Money Pro marks order block retests and breaker blocks by name on MT4 and MT5.

Frequently asked questions

What is an order block in forex?

The last opposite-colour candle before a strong move that breaks structure. Traders expect price to react when it returns to that candle.

What is the difference between an order block and a breaker block?

An order block is expected to hold. A breaker is an order block that failed: price broke through it, and the retest from the other side is traded instead.

Do order blocks work on gold?

They can. Gold respects order blocks well around the London and New York sessions, but it moves fast, so allow a slightly wider stop beyond the block.

How many times can an order block be used?

Usually only the first return is traded. Once tapped, a block is considered spent.

T
Tris (Stormtrader)UK-based forex and gold trader, former COBOL software designer, and the builder of The Trader’s Ledger and the TTL indicators for MT4 and MT5. More about me.

Educational content only, not financial advice. Trading carries a high level of risk and you can lose more than you expect. Examples use illustrative prices.