Transcript for:
Trading Transformation Day 22: Identifying Breaker Blocks

trading transformation day 22 we're one day away from putting everything together where I can finally give you guys the strategy okay but first we have to get through talking out break breaker blocks okay we are we already explained breaker blocks talked about how they're useful to us uh today we're going to get into identifying them okay so it should be relatively easy we're just going to draw these [ __ ] out and then we are going to go ahead and identify them on the chart and again why are they useful to us because there's a lack of orders going in the opposite direction right so if we have oops so if we have come on man so if we have a little bro why why is it moving we oh that's why okay so if we have an uptrend like this right we can consider these retracements areas where sell orders were getting filled right we see boom more sell orders get it filled price moves down because of it then we see boom a break of structure okay right within here is our breaker block right and we know if price revisits this again this is another one of our continuation confluences we can see that there's going to be a lack of sell orders within here we see buying power out of it price is likely going to continue higher super similar to a fair value Gap okay honestly paired with a fair value Gap is a pretty awesome confluence and then now let's go into boom an uptrend right every single one of these legs down these retracements more buy orders getting filled okay this is our breaker block prior to Breaking structure right and we know that within here there is a lack of buy orders so when price pushes in here and we see selling power out of it we can assume that price is going to go lower why because when price entered through it it was able to go cleanly past it and break structure cool now let's go into identifying them the easiest way to identify them is looking at them like this it's literally the like the opposite of an order block okay so a bullish breaker is going to be the move down prior to the break of structure and a bearish breaker o sorry a bearish breaker is the move move down prior to break structure to the downside boom boom and then a bullish breaker is going to be the move up prior to the break of structure to the downside boom cool cool let's get into identifying these babies these babies babies babies babies Bish let's move into some better price action I really have not traded much at all over the past really like two weeks put this into like a higher time frame see if we can see anything nice okay perfect example right here okay so we have [Music] boom we have this is the break this is the break of structure right here right boom we we want to find the the move up prior to the break of structure to the upside okay we have two situations here typically for me right I'm looking for the leg down that causes like the liquidity sweep either way you can Mark either of these as the breaker with this right which one's the move up prior to the break of structure to the upside we see the break of structure to the upside right here on the hourly okay we have this boom this up candle and this whole up candle breaker right here if you wanted to you could also consider this a breaker okay because typically what we like to what some people like to do is they like to identify the legs up prior to the liquidity sweep and we can see that this is the liquidity sweep but in reality right we see that this offered a better entry okay let's go and find a more clear example of this and there's one right here okay we see a boom big leg up break of structure to the downside what do we want to do we want to find the move down boom prior to the break of structure to the downside to find that bearish break block right we see that big leg up okay we see price break structure boom we see it revisit we see selling power out of it boom price continues lower okay let's try and find more examples of this and again is this one of those things where price is just always 1 million trillion per going to draw towards it just because it gets formed no definitely not sorry I'm still recovering um but it's something that we can take note of and if we see it draw into a breaker and if we see reactions out of it what can we safely assume that price is going to continue in that direction okay all of these are just confluences that help us understand where price wants to go okay this is another good example we have a bre structure to the upside right here off this candle boom let's see if price did price even get into this one oh unfortunately not okay we got real close to this and this is when right we can highlight a couple things boom breaker imbalances within here right all of that but that was a breaking block what happened over here let's see if we can find some Market open uh where did price go hello see if we can find some on the low time [Music] frame okay here we go we had boom break of structure to the upside right here we have the move up prior to the break of structure of the upside okay we see that boom slight little tap in okay we get that rejection boom continuation to the upside right here price continues higher what else do we have that combined with boom we have a fair value Gap within here okay what can we also consider this Black Candle mve down order block right so now you're starting to see how all of our confluences can start to come together with this let's do some more examples here okay this one again I'm just when I put things together this is literally just identifying it when we start putting things together it's going to make a lot more sense we're just just drawing these out and showing them where again this isn't going to be one of those things where you're just like oh I see a breaker boom boom boom enter no that's not and great I just lost my position um oh literally switched bro um it's not going to be like oh breaker bet spam you know like bue no bro like Focus okay like there's going to be several confluences that we wait for not just like Fair Val you got bet or just like order block no bro okay so boom we get a break structure to the down side okay we see the move down prior to the break boom we see price push on into it okay we see rejection to the downside price continues lower see if we can find any more of these I really have to go poop got to go see nope okay right here we get a break of structure to the upside boom we have the move up prior to the break of structure to the upside okay boom we see price revisit the breaker price continues higher and like this is a perfect example of okay we closed past a fair value Gap but we also have a Confluence here right this is getting a little bit into like putting [ __ ] together and and I'm probably going to end this video soon because I'm pretty sure you guys get the gist of it okay but when we see some of our confluences get invalidated but we have other confluences right that doesn't necessarily mean like oh the fair value G gone like [ __ ] it we're out of here no right we got to sit here and realize like okay we got to Breaking structure to the upside okay fair value Gap it got invalidated but boom we still have this breaker block that it could be drawing towards boom we see buying power out of it okay price continues higher right here we see a break of structure of the downside okay where's the move down prior to the break of structure to the downside right here okay see we see price push on up in here into the breaker okay we see selling power out of it price continues lower okay and again this this is like it's easy for me to just go on here and just be like Bing Bong boom blah blah blah blah blah watch perfect it works it's not going to work every single [ __ ] time I'm cherry picking these but I'm cherry picking these so that you guys can see exactly what the [ __ ] a breaker is before we get into actually putting this [ __ ] together and trust me when we put this [ __ ] together it's going to be really [ __ ] easy for you guys okay but with that being said I'm pretty sure you guys know how to identify these [ __ ] now we're locked we're loaded I will see you guys sometime hopefully tomorrow I should be relatively free tomorrow to make the putting that [ __ ] together day one to start creating our strategy to start actually taking trades okay it's been a while um I've just been giving you guys a whole bunch of confluences you guys have been sitting with your hands in your ass for 22 days bro 22 days of watching this series and you guys haven't been able to take a trade you guys don't know how to even find daily bias how to figure out when to place a trade how to put confluences together so we're going to get into all of that hopefully starting tomorrow all right I'll catch you boys I'm going to go to the bathroom now peace out