💥 Order Flow Inversion: When Failure Creates Opportunity
A failed Order Block is not an error—it is an institutional re-calibration. When large institutions fail to defend a support order block, their internal positions remain underwater. The market must retrace to the failed zone to mitigate those drawdown orders before resuming the dominant displacement.
Distinguishing Breaker Blocks from Mitigation Blocks
- Breaker Block (High Quality): An Order Block that successfully swept liquidity (took out a prior swing high) before being violently broken to the downside. Because liquidity was swept, trapped orders are immense, offering exceptional rejection force on retest.
- Mitigation Block (Moderate Quality): An Order Block that failed to sweep liquidity (produced a Lower High) prior to being broken. Useful for quick momentum continuations.
🎯 Breaker Block Entry Technique:
Enter directly on the retest of the Breaker Block body. Place stop loss above the high of the Breaker candle. Target the nearest opposing liquidity pool.