@itsnathanoreilly: A bullish order block can fail, and that failure can become the reason to watch the same area for a sell. That's the idea behind a bearish breaker block in ICT/SMC price action trading. This chart example starts with a market already making lower highs and lower lows. The wider structure is bearish, so the first thing I'm interested in is whether a move higher is a genuine change in direction or just a retracement. FIRST, THE LIQUIDITY SWEEP Price pushes above a previous swing high, taking out an area where buy-side liquidity may be resting. That catches my attention, but it doesn't automatically mean I want to sell. A sweep can be followed by another move higher, and there's no reason to assume the reversal has started just because a high was taken. NEXT, THE BLOCK FAILS The important part comes afterwards. Price sells off and breaks beneath a zone that had previously acted as a bullish order block. That zone is highlighted in blue in the example. Once the bullish block fails, some ICT/SMC traders will watch it as a potential bearish breaker block. In simple terms, an area previously viewed as support may act as resistance if price comes back to test it from underneath. The key distinction is that the break comes BEFORE the retest. Without the block failing, there's no reason to call the original zone a bearish breaker. THEN, WAIT FOR THE RETEST Rather than chasing the bearish move after the break, the idea is to watch whether price returns towards the broken zone. If price retraces into that area and sellers respond, it gives us a more specific place to assess a potential short. If price pushes back through it, the bearish idea may be weakening instead. That's a different process from selling simply because price swept a high. WHAT ABOUT THE RISK? In the illustration, the stop loss is placed above the swept high, with a downside target giving approximately a 1:2 risk-to-reward ratio. That ratio only describes the planned distances between the entry, stop and target. It says nothing on its own about how often the setup wins or whether it has a positive expectancy after trading costs. The chart shows price reaching the target, but one selected example cannot establish a repeatable edge. THE TAKEAWAY The sweep gives us a location to pay attention to. The failed bullish block changes how we interpret that area. The retest offers a possible entry location. Three different pieces of information, not three guarantees. Follow for more price action trading, liquidity and breaker block breakdowns. #BreakerBlock #ICTTrading #LiquiditySweep #PriceActionTrading

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Wednesday 21 October 2026 21:42:18 GMT