How to Draw Order & Breaker Blocks in Forex Trading
Drawing order and breaker blocks in Forex is a great way to strategize and identify important turning points in the market. Order blocks help traders identify entry and exit points in the market, while breaker blocks help traders identify resistance or support levels that could indicate when a trend is changing. Order blocks are made up of two horizontal lines, one that connects the highest and lowest points of a given period, and the other connecting the close of the previous candle with the open of the new candle. Breaker blocks consist of three lines, one horizontal line located at the high or low of the period, and two diagonal lines that connect the opposite ends of the period’s range. By looking at the shape of the order and breaker blocks formed on the chart, traders can identify when a trend may be reversing.