All language subtitles for Lesson 3.2 - Reinforcing Orderblock Theory [Breaker Blocks]

Okay folks, we're going to
be looking at the breaker.

Okay.

And what we're gonna be looking at is
how we can use this form of mitigate.

To highlight a trade set up where I
assume that we're watching price and it

trades lower and creates a short term low.

Eventually when that short, low is
violated and trades down into a support

level, we view that initial drop down
below the previous low as a potential

false break or total super-long.

Below short-term lows.

There's going to be cell stops.

And our expectation is, is that we
want to see if the market wants to

get back above that short term low.

Initially it may come up and flirt
with that same old, low, and an

indication that may want to view that
as a resistance price point, we're

more inclined to wait to see if it
wants to show a real significant price.

Eventually, when we see that
here, this is going to be informed

of a market structure shift.

It takes out the high
or the short-term high.

That high is what we focus on.

Wait for price to come back
down into that old high.

And when it trades there, we view that
as real support, because there's going

to be orders inside that high that
we'll be looking to be mitigating.

In other words, those individuals
that were short at that high,

they're going to want to take those
positions off and maybe get in sync

with a new leg higher in price.

As price moves away that
confirms the breaker.

And then we wait for higher
objectives to be met in price action.

Again, focusing on the high
in between the two lower, low.

One low has to be traded below and
it's going to run out the cell stops.

We focus our attention on the short-term
high that's in between the two lows.

We use that as a resistance level,
that's broken, that will become

support, making it a bullish.

Contrastingly we can look at the market
in this way when the market trades

higher and it takes out an old high
and then breaks below the load, it

makes that new high, our focus is there
and we view that as a bearish break.

Okay, so take a look, a closer
look, a bearish breaker.

Okay.

Bear's breaker is a bearish range or
down closed candle and the most recent

swing low prior to an old high being
violated the buyers that buy this low

and later see this same swing, low
violated we'll look to mitigate the.

When price returns back to the swing low,
this is a bearish trade set up worth.

Considering

too.

We have an old high here it's
traded through and rejected.

It runs to stops above the old high.

Those by stops are now neutralized and
we focus our attention on the swing low.

That formed between the two, huh.

We see a market structure break
retrains back to the swing low.

That is the bearish breaker.

We look for another low, the
form with a new leg in price.

Moving.

the salient points are what we're
looking for as an old high to be ran

out or a false break above an old high.

This read on by stops.

Indicate buyers are trapped long.

We know this is true when the market
quickly does a repricing net seen here

repricing lower after by stops or.

That is a confirmation that we are
potentially seeing a new breaker forming.

The low gets violated here.

Once market structure is broken down
and all future retracements what we

viewed as new selling opportunities,
especially wants to trades back up to

the low here that gives us our bearish.

Okay.

For a bullish breaker, it's a Bush
ranger up-close candle on the most recent

swing high prior to an old, low being
violated the sellers that sold this

low and later see this same swing high
violated we'll look to mitigate the loss.

When price returns back to the swing high,
this is a bullish trade set up worth.

Considering again, we have an
old, low that's violated taking.

Sell stops below that old low our swing
highs, where we're going to be looking

for our bullish breaker, but we have
to wait for price to break through

that swing high, to confirm that there
has been a run on stops and that, that

old swing high will house or inside
that swing high will reside a bullish.

As price trades back down to that swing
high, we would be buying that, but the

expectation that there's going to be
a mitigation taking place, those sell

orders that they use to drive prices
down below the old low, they would be

underwater here or not making a profit.

So they're going to want to take
those off and add more longs

and that's our bullish breaker.

And then we would expect to see and
anticipate at range expansion to the us.

to telltale signs that you have a
breaker information or confirmation.

The rate on cell stops indicates
sellers are trapped below the old low.

The range expansion that takes out the
short-term high in between the two lows.

This repricing higher after cell stops are
taken as a confirmation that the market

is in fact, run on stops below an old, low
and old high that's violated that supports

a market structure shift for bullishness.

This run here.

Supports the market structure being
broken higher in any retracements from

this point on will be viewed as a new
buying opportunity when it trades back

into the old swing high here, let me
see that that's a bullish breaker.

So let's take a look at
it in real price action.

Okay.

We have an old low here, the market
trades down below that low and punches

through it again, and then rallies up.

So what we're seeing here
is that market structures.

After stops have been
taken on the sell side.

So there's been a massive repricing
to the market's going to want to look

to reprice lower and retrace back down
into what, whereas our focus point, we

find the short-term high in the last
up candle and between the two lows

that most recently formed and taking
out those cell stops that scene here.

So right now this would
be viewed as a bullish.

We would anticipate seeing in the
market to trade higher where those

orders would be collapsed once Retraded
back down to with price, any selling

orders would be mitigated and new
buying orders would be replacing them.

And there's a subsequent price actions
you would anticipate seeing in your.

So it started your charts, looking at
examples where you see this formation,

where you have the market creating
a low, and then the market trade

down lower one more time and runs
through to short-term high in between.

This is where classic support ideas.

Effective, uh, probably
done what I've done.

And as a new trader, where we look
for support resistance ideas by

drawing a horizontal line, and you
think that, you know, it's that easy?

Well, you have to have a storyline
behind why prices don't work doing.

If you understand what the breaker is
doing, it's indicating that it's running.

Pool of liquidity out when you find
the short-term load has been violated.

Find the short-term height that
this recently formed when it trades

back down to that, that will be
in fact, a support level that is

highly probable for bullish prices.

You see that here, it's trading
inside the range that's created

with this last up candle.

Why am I using this one?

And this one here, because this one
was the highest one prior to the

dropdown and we're using the entire way.

Price trades down into it.

Recapitalize is all the selling they
sold here that drove prices down to take.

These cell stops out there.

Underwater are losing money here.

They have deeper pockets in the us.

They'll wait for price to get back
to an area where they can mitigate

those shorts and add new longs.

And that's why you see
that explosive price.

Action.

See.

So, hopefully this has been
more insight to breakers.

And we'll talk more about these as
we go through the mentorship and

futures months until next time,
which good luck and good trading.