Notes on ICT Breaker Blocks

breaker blocks are one of the most misused ICT Concepts out there right now and you're probably making the same mistakes as the other 90% of the Traders trading the strategy calm down I've got you covered I've made just over $700,000 in my career trading ICT Concepts and today I'm going to be busting all the myths regarding this one topic once and for all this is my full no fluff guide on understanding ICT breaker blocks after watching this video you'll not only get a clear understanding on how breaker blocks work but an actionable strategy that you can copy and paste and Implement into your trading right now so the first thing we're going to cover is a bullish breaker block now what is a bullish breaker block what is it composed of because there's a lot of things in this video that I want to cover that isn't just breaker blocks right breaker blocks is just the concept we have to understand when should we be using them when do we know that they're actually valid there's so much more that people don't talk about it's not just a breaker block right if if we were to just trade a breaker block like this pattern we would be considered pattern Traders right without context as to why this pattern will work there's really no reason to be trading it right you won't be successful and that's why so many people that initially learn ICT Concepts they'll see a fair value Gap or they'll see a breaker block and they're just going to take a random trade without any context and then they wonder why the concepts don't work it's because they're not applying any context so in this video I want to go over first what the actual breaker block is what is it and how we can then spot it in the charts and actually understand the context as to when they work when they don't work so first thing what is a bullish breaker block now a bullish breaker block is going to be composed of four main parts right we're going to have a low that gets put in of retracement to create a high then going to make a lower low and then umming all the way back up to make a higher high before coming down to retest this up Clos candle in this move here and then continuing higher hopefully towards whatever the draw on liquidity is and that's when we'll get into the more context side of things but main thing just this part I want you to understand it's composed of four things a low high lower low higher high and in a bearish breaker block it is the same thing except it is a high low higher high lower low so let's jump into the charts let's look at some examples and let's cover the actual context as to why they work so what we're looking at here is NASDAQ and what we're looking at is this accumulation range we have equal highs up here acting as buy side we have sell side here now for me to take a trade I want to see one of the opposing liquidity pools get taken and a lot of the times people are going to be continuing to trade in this range and just get chopped back and forth when in reality we want to be waiting for an opposing liquidity pool to be taken so here we go we have sell side now taken so what do we want to see right we want to see a low get put in and then a lower low right so here we are let me get out of full screen here we have a low that gets put in we want to see a lower low this is now our high so we can put a low and a high in we're looking for now a lower low to be put in we now put in a lower low and now I want to see displacement right up through this High to now create a higher high now keep in mind the whole point in which we are watching this play out is because cellid has been taken right a breaker block is valid when we have a reason for price to go higher what is the reason for price to go higher well in this specific example we can see all of this generated buy side liquidity that we've left along the way right so we want to see price come up and run all of this liquidity now if you don't understand or not new I'm going to leave some videos in the description because there's a lot of things that you don't that you need to understand that can correlate with breaker blocks right it's putting them all together for example buy side of the curve right this being buy side of the curve if you don't know what that means take a moment and go watch this video right here I'm going to put somewhere on the screen Market maker models go watch the market maker model video and then come back here and watch the break Block video so now that we've have a new higher high put in this now becomes our breaker right this up closed candle that we create from the high gets pulled over and as you can see this fair value Gap right here as well is overlapped with this breaker now this is what we call a unicorn right a unicorn is a fair value Gap that is aligned with a break it is a fair value Gap and a breaker so if we go back to this model that we have there would also be a breaker or a fair value Gap now if we were to look back at this model this is what a unicorn would look like right it is a fair value Gap after the big displacement move aligned with this breaker right this is a higher chance and a higher probability that this area is going to bounce and we're going to continue towards the upside so looking back at this this is where we would be looking to possibly take an entry for Value Gap you would put your low at this recent or put your stop at this recent low what it would be targeting we' be targeting buy side liquidity we then get displacement move to the upside before pulling back into the breaker this is when you could possibly have another entry as well and if you actually look and if we were to zoom in here you can actually see the exact same thing forming low gets put in high lower low displacement and another breaker now price is completely fractal meaning every single thing that you see on every time frame will be in correlation with a model meaning every setup and every thing and every concept that you look at can be on a 1 minute a 5 minute a 1 hour whatever it is it is constantly repeating itself so there's multiple entries that you can be taking here if we zoom out this is a breaker right this is buy side of the curve going up to go take out buy side liquidity now when Market pulls back into this breaker let's say you didn't get this entry right you then zoom in and you look for the exact same thing in an area in which we expect to reject right if we were to zoom out and you actually understand why I picked this specific example and why this is the trade that we should be taking is because we're in an area in which we expect to reject on a bigger time frame if we zoom out to the 1 hour or if we zoom out to the 15 minute we can actually see we are in a 15-minute inverse fair value Gap back in OT of this price leg we just tapped ot to the tick and we expecting to see displacement through these highs to go run up towards buy side so we're aligning the external bias with the internal bias and now a word from our sponsor now if I had to guess this probably isn't the first strategy video of mine that you've watched you've probably been some of my other ICT related content but if you've done all that and you still know that you're not living up to your potential as a Trader I can help you you have everything you need to succeed right now except implementation I'm talking about actually applying the concepts that you've learned and having somebody to hold you accountable through that process that's what my mentorship is all about holding your hand and making it literally impossible for you to fail over a long enough time frame so if you're not happy with your current results you know who you are go click the link in the description take a look see if it's for you let's get back to the video so now when we Zoom back in the initial entry could be here or you can wait for the exact same thing back inside the breaker stop raid lower low higher high pull back into the breaker this up close candle right here up close then down Clos candle we also have a fair value Gap is here acting as a unicorn what do you think is probably going to happen this is when we expect to see a move towards buy side you can see we get a beautiful push higher and there we go buy side has now been taken now what I want you to recognize with this when it comes to fracability as well I know we're talking a lot about Breakers but there's a reason we're talking a lot about Breakers in a breaker video is because Breakers only work when you can apply all of these other things to it right Breakers are there a reason it is a good entry model but unless you have context a breaker does not mean anything a breaker will fail on you and you will question why did this breaker not work it's because you didn't have context that's in place to actually give you a reason why it should be holding or why we should displace to the upside or why we should it displace to the downside right another thing I want you to notice is this is byy side of the curve as well right this is a model inside of a model right you have sell set of the curve you have buy set of the curve this is a buy model in side of a bu model right this is fracability in price action what do you mean by fracability Justin fracability meaning infinite number of complex patterns that overlap for example if we're looking at a square right if I was to draw just a square here I could tell you that there's four squares in this square right there's 1 2 3 four right there's four squares that make up in this square but they're the exact same square right a square is a square but there's four in this square and guess what there's four four more in this square and guess what there's four more in this Square this is the market this is the market the market is completely fractal it is models inside of models inside of models and if have you ever wondered people don't understand what ict's logo is if we were to pull up ICT logo what is this it is a fractal pattern it is the exact same pattern inside it inside again inside again zoomed in zoomed in zoomed in zoomed in cuz it is is completely fractal the market is completely fractal right so how do we use that knowledge to our advantage it's understanding that when you align the external bias with the internal bias you can get efficient price action and you can get pretty much infinite opportunity because there's always going to be a trade to take if you know what a time frame is going to do if you know what the 5 minute is going to do Zoom down to the one minute and understand how to take an entry if you know what the 4 Hour or the 1 hour is going to do go down to a 30 minute go down to a 15 minute a 5 minute and look for the same thing right it's aligning these two things for example if I was to show you this chart right now and I was to say hey this is a 1 hour right because right now we're looking at a one minute chart if I was to tell you this was a 1 hour we would literally do the exact same thing I would go down into a 30 minute right I would go down or not in a 30 minut I would go down probably to a 5 minute and let's say this case you know a 15 second oh I don't think we have the data to support it but but this that would that is when I would go down and I would zoom in and I would look for an entry using the bigger time frame bias right we find the bias whatever on that time frame is we zoom in and we look for a trade right so I know we covered a lot just in this one little trade but it is extremely important to know a breaker doesn't matter unless you have context right and we know the context of this trade buy side resting Above Us sell side has been taken in an area in which we expect to reject we have a breaker formed and we have a other breaker formed in the exact same model right sparking the move towards the upside right so let's look at some more examples so now going back to this initial model that we drew there's something that we now want to add to this because this is a breaker in itself but what most people don't show you in the actual way that you should be using it right cuz this itself doesn't really do anything for you you're going to go in the market and you're going to look for this pattern and you're going to take entries right here long and then this is going to go straight down and you're going to get rain through you're going to be why why did that what happened what happened right so I'm going to actually do you a favor here this is how you should be looking for it now we have proper context as to why this breaker should hold why should this breaker hold what did we add we added sells side and buy side liquidity sell side as you can see has now been taken we had some form of sells side liquidity that has now been taken now we get displacement to the upside now we have a breaker and and important that there is buy side resting above there is a reason for price to go higher right and one thing I want you guys to know is there's four reasons why markets move and every trade that you take should be a reason for one of these right so what are the four reasons number one the markets move to hunt liquidity number two markets move to rebalance to inefficiencies number three markets rebalance to equilibrium and number four markets generate liquidity every second of the day we are doing one of these four things okay so when you take a trade every bias or reason for you to be taking that trade should be aligned with one of those reasons for example if I am taking a long in this breaker I should be targeting either some sort of area of liquidity some sort of imbalance right cuz markets on liquidity markets rebalance inefficiencies markets I could be talking equilibrium of the previous price leg right right and to take this even one step further to even add more context right we're going to start developing an A+ strategy here right what is the more conviction that I can comp continue to add on to this that is going to make this an even better trade let's let's keep adding so the next thing added bigger time frame fair value Gap let's say there's sell side here right some sort of sells side liquidity has now been taken but we're also in a bigger time frame fair value Gap right so there's more of a reason why we should bounce here and why we should go to the upside cuz on a bigger time frame we're now in an area in which we expect to reject and we just took some form of sell set liquidity so we expect the market to most likely go higher here now right so we're continuing to add conviction here what is even more that we can look for and to give us more conviction or more confidence that this right here in this breaker is going to hold bullish and we will go higher we have now added another thing there is now an smt what is an smt I'm going to link another video right all of these things are starting to come together right it's putting the pieces how can you have the most high confidence trade or high confidence reason to take a trade right trading is not about oh learning a breaker learning a fair value Gap oh there's an order block oh there's a fair all all of these Concepts don't mean anything if it's by themselves when you align them and you can start building conviction as to why the market actually moves and then being an observer and simply letting it come to you and saying hey there's an smt that just formed hey we just had displacement to the upside hey this just happened instead of actively looking for it because you're going to actively look for it and you're going to say hey I I think we just put in a low I think I think we're I think we're bullish right now and then you're going to take unnecessary trades and unnecessary losses when the market really hasn't shown you anything watch this will form this might not form as often as you as you want it to but it will and these are the high confidence setups that you can take because you continue to add conviction in reasoning as to why the market should right there's a reason we trade ICT Concepts this is not some astrological this isn't some astrology type [ __ ] where the stars are aligning we're finally seeing it this is showing us a reason for the price to actually move an algorithm runs this Market when we see a cracken correlation in the assets there's a reason for markets to move when we see sells side taken there's a buy side resting above us there's a reason for markets to move right all of these things show us and give us confidence that the more that we see them right all right let let's add another one 950 macro now I know I'm going to I'm going to complicate this video I'm sorry for the people that just wanted to come and learning learn about a breaker block but I'm going to I'm going to over give you I'm going to give you as much value as I can in such a short amount of time 950 macro if you don't know what a macro is I highly recommend going and searching it up I don't think I have a macro video maybe I plan on making one on YouTube we talk a lot about it in our private group so if you want to learn more in implementing these actual Concepts go check the link in the description check it out if you are having actually R do that so adding another piece of conviction 950 macro I don't think I have a video on Macros yet on my YouTube I might end up doing it I might not I do have a video on Macros in my mentorship and we talk a lot about them but this is an area in which when 950 macro opens up this is adding more conviction right because this is in time in which we expect the algorithm to hunt liquidity to move to reverse all of these things right so this is another form of conviction so now we've kind of added a lot of things but I just wanted to do this to show you guys and give you guys an idea as to what this actually looks like right building conviction actually taking the setup me just showing you what a breaker is doesn't really do much right how am I actually going to implement it how am I actually going to trade it it's about recognizing is there a reason for price to go higher is there buy side is there an imbalance is there a reason for us to bounce is there an smt are we in a bigger time frame for Value Gap did sell side get taken right all of these things are more important than the breaker the breaker is the least important thing in this in this entire equation right all of these other things come first and that is what the people don't teach you and that is why people set you up for failure the breaker comes last everything else becomes first because the breaker simply is just the entry model there's got to be a reason for it to actually work and if there's no reason it's not going to so let's jump in and let's look at some more examples all right looking at another example looking at NQ right but this time we're actually going to talk about the confluences the reason why this works right number one notice we're looking at this high right I want you to just recognize are are we are we looking for a bearish breaker or a bullish breaker we're looking for a bearish breaker on a smaller time frame because this is our buy side and this is when we want to zoom in once this gets taken notice bigger time frame imbalance here on the 5 minute as well as all of this generated sells side liquidity here low here low here relative equal lows down here this is where we want to see buy side get taken rejection of the imbalance possible smt and then look to see a breaker form right so we let the market do its thing and here is when we add more context on ES we took this High to the left of us so now we have even more added conviction draw in liquidity is lower number one rejection of a bigger time frame imbalance number two number three buy side swept number four that's is that four yeah we're starting to get displacement to the downside so what's the breaker we're looking at here well low or high low higher high low or high let's mark this in first High gets put in first low higher high and then we start displacing to the downside and putting in a lower low now this becomes our breaker this down closed candle Market th pulls back again also what else is here a fair value Gap we respect both of these is what we're expecting Market comes up Taps the breaker as well as continuing to respect this fair value Gap this is when you can look to take a short in this breaker put your stop at whatever the recent imbalance is or you can put it up higher it is up to you what would you be targeting your first Target would be sell side liquidity and you would let your runner go to the next area of liquidity and then the next area of liquidity because all of this is generated sell side liquidity in which we expect to get taken Market rejects starts to sell all the way off and ends up running all the way to cell side but again the context as to why this works the context as to why we dump here it is not just oh you know Justin you chose these examples you know just to show it works you know but you can't actually do it live there's a reason why I chose the examples I'm showing you because these are real high quality setups it is not just oh they worked out because there's because it's lucky right they worked out because they should have worked out there's a reason for them to work out the reason is the bigger time frame draw liquidity is bearish order flow is bearish when we zoom out here and we add even more context to this we do a complete top- down analysis 1 hour our 1 hour drawn liquidity is bearish why is our 1 hour drawn liquidity bearish because we're in a massive 1H hour fair value Gap there is a big smt on the bigger time frame there's a crack and correlation between the indices so our bigger time frame is bearish right and we're in an area in which we expect to reject being this 1hour fair value Gap so we zoom in once again what has happened we created relative equal lows acting as sside liquidity which we expect to get taken if I am looking to see sside get taken I want to zoom in and I want to look for a manipulation in the opposite direction of the draw liquidity being buy Side High gets put in pull back what do we respect consequent encroachment of this Wick if I was to draw this in this big wick a lot of the times when we have a big wick like this we will pull back in respect consequent encroachment consequent encroachment is the midpoint of this Wick we come down we respect it we move higher we go take buy side run all of the buy stops that were looking to be short targeting lower stopping in the out all before the actual move then we zoom in even more there's now an smt on the bigger time frame right this High gets taken on ES not on NQ and there's a f there's a bigger time frame for Value Gap here 5 minute fair value Gap we also reject so now we then zoom in high low higher high lower low pull back to the breaker block short Target liquidity there's a reason for it and if you want to throw in possible standard deviation projection I'll leave a link somewhere on the screen for standard deviation you can also see standard deviation lines up to the tick to the tick as to where we expect price to go which is sside liquidity so coincidence up to you to decide honestly the more I I I personally feel like it's blasphemy literally if if once you see it happen enough go in your chart I challenge you go in your chart and look for this to happen live because again the concepts don't matter unless you have implementation right and so many people struggle with breaker blocks with liquidity with psychology all of these things I can make as much videos as I want but unless you actually have somebody to go to and watch and ask questions and actually practice and look at the implementation of these ideas and of these Concepts because 95% of the people on social media and on YouTube and everything you watch have no [ __ ] clue what they're talking about they can't actually back up what they do they can't practice what they preach they don't practice good risk management they don't practice the actual trades that they take that is a problem so if you are still struggling right if you still struggling and you can't seem to understand or you understand the concepts but you're still losing or you're in your break even phase whatever it is I highly highly recommend letting me help you let me help you I do this for a reason I love seeing you guys finally [ __ ] put the pieces together and seeing the light bulbs go off and I'm hoping something in this video did it for you but seeing that growth is what builds me satisfaction so I'm going to leave a link in the description if you guys have been looking for someone that you can trust that you can go to with your problems who is going to tell you what you need to [ __ ] hear I'm not going to sugarcoat anything someone that you need to hear I'm going to leave a link in the description to my mentorship this mentorship is meant for people who want to actually learn the right way to trade not someone who's going to slack the [ __ ] off and think that it's just going to be handed to them because it still is going to take a lot of work but you're going to have access to 60 plus videos of everything I know daily charting sessions daily live trading sessions where you're going to be able to actually watch me trade live and you're going to be able to actually ask questions about your trading your specific trading what are you doing wrong saying Justin hey I took this trade on Friday I got stopped out I think I did this right I think I did this wrong whatever it is what do you think and I can show you and I can give you feedback and you can come on the call with everybody and it's an amazing Community where we all come together and we figure out what the problems are we help each other and it is a blessing if you enjoyed this video I think you'll also like one of my other ICT breakdown videos where I cover turtle soup you guys requested this one for months and it also is a really misunderstood concept I'm going to link it somewhere around here now I've got plenty more of these on the way so make sure you're subscribed thank you guys for your support and I'll see you in the next one

breaker blocks are one of the most misused ICT Concepts out there right now and you&#39;re probably making the same mistakes as the other 90% of the Traders trading the strategy calm down I&#39;ve got you covered I&#39;ve made just over $700,000 in my career trading ICT Concepts and today I&#39;m going to be busting all the myths regarding this one topic once and for all this is my full no fluff guide on understanding ICT breaker blocks after watching this video you&#39;ll not only get a clear understanding on how breaker blocks work but an actionable strategy that you can copy and paste and Implement into your trading right now so the first thing we&#39;re going to cover is a bullish breaker block now what is a bullish breaker block what is it composed of because there&#39;s a lot of things in this video that I want to cover that isn&#39;t just breaker blocks right breaker blocks is just the concept we have to understand when should we be using them when do we know that they&#39;re actually valid there&#39;s so much more that people don&#39;t talk about it&#39;s not just a breaker block right if if we were to just trade a breaker block like this pattern we would be considered pattern Traders right without context as to why this pattern will work there&#39;s really no reason to be trading it right you won&#39;t be successful and that&#39;s why so many people that initially learn ICT Concepts they&#39;ll see a fair value Gap or they&#39;ll see a breaker block and they&#39;re just going to take a random trade without any context and then they wonder why the concepts don&#39;t work it&#39;s because they&#39;re not applying any context so in this video I want to go over first what the actual breaker block is what is it and how we can then spot it in the charts and actually understand the context as to when they work when they don&#39;t work so first thing what is a bullish breaker block now a bullish breaker block is going to be composed of four main parts right we&#39;re going to have a low that gets put in of retracement to create a high then going to make a lower low and then umming all the way back up to make a higher high before coming down to retest this up Clos candle in this move here and then continuing higher hopefully towards whatever the draw on liquidity is and that&#39;s when we&#39;ll get into the more context side of things but main thing just this part I want you to understand it&#39;s composed of four things a low high lower low higher high and in a bearish breaker block it is the same thing except it is a high low higher high lower low so let&#39;s jump into the charts let&#39;s look at some examples and let&#39;s cover the actual context as to why they work so what we&#39;re looking at here is NASDAQ and what we&#39;re looking at is this accumulation range we have equal highs up here acting as buy side we have sell side here now for me to take a trade I want to see one of the opposing liquidity pools get taken and a lot of the times people are going to be continuing to trade in this range and just get chopped back and forth when in reality we want to be waiting for an opposing liquidity pool to be taken so here we go we have sell side now taken so what do we want to see right we want to see a low get put in and then a lower low right so here we are let me get out of full screen here we have a low that gets put in we want to see a lower low this is now our high so we can put a low and a high in we&#39;re looking for now a lower low to be put in we now put in a lower low and now I want to see displacement right up through this High to now create a higher high now keep in mind the whole point in which we are watching this play out is because cellid has been taken right a breaker block is valid when we have a reason for price to go higher what is the reason for price to go higher well in this specific example we can see all of this generated buy side liquidity that we&#39;ve left along the way right so we want to see price come up and run all of this liquidity now if you don&#39;t understand or not new I&#39;m going to leave some videos in the description because there&#39;s a lot of things that you don&#39;t that you need to understand that can correlate with breaker blocks right it&#39;s putting them all together for example buy side of the curve right this being buy side of the curve if you don&#39;t know what that means take a moment and go watch this video right here I&#39;m going to put somewhere on the screen Market maker models go watch the market maker model video and then come back here and watch the break Block video so now that we&#39;ve have a new higher high put in this now becomes our breaker right this up closed candle that we create from the high gets pulled over and as you can see this fair value Gap right here as well is overlapped with this breaker now this is what we call a unicorn right a unicorn is a fair value Gap that is aligned with a break it is a fair value Gap and a breaker so if we go back to this model that we have there would also be a breaker or a fair value Gap now if we were to look back at this model this is what a unicorn would look like right it is a fair value Gap after the big displacement move aligned with this breaker right this is a higher chance and a higher probability that this area is going to bounce and we&#39;re going to continue towards the upside so looking back at this this is where we would be looking to possibly take an entry for Value Gap you would put your low at this recent or put your stop at this recent low what it would be targeting we&#39; be targeting buy side liquidity we then get displacement move to the upside before pulling back into the breaker this is when you could possibly have another entry as well and if you actually look and if we were to zoom in here you can actually see the exact same thing forming low gets put in high lower low displacement and another breaker now price is completely fractal meaning every single thing that you see on every time frame will be in correlation with a model meaning every setup and every thing and every concept that you look at can be on a 1 minute a 5 minute a 1 hour whatever it is it is constantly repeating itself so there&#39;s multiple entries that you can be taking here if we zoom out this is a breaker right this is buy side of the curve going up to go take out buy side liquidity now when Market pulls back into this breaker let&#39;s say you didn&#39;t get this entry right you then zoom in and you look for the exact same thing in an area in which we expect to reject right if we were to zoom out and you actually understand why I picked this specific example and why this is the trade that we should be taking is because we&#39;re in an area in which we expect to reject on a bigger time frame if we zoom out to the 1 hour or if we zoom out to the 15 minute we can actually see we are in a 15-minute inverse fair value Gap back in OT of this price leg we just tapped ot to the tick and we expecting to see displacement through these highs to go run up towards buy side so we&#39;re aligning the external bias with the internal bias and now a word from our sponsor now if I had to guess this probably isn&#39;t the first strategy video of mine that you&#39;ve watched you&#39;ve probably been some of my other ICT related content but if you&#39;ve done all that and you still know that you&#39;re not living up to your potential as a Trader I can help you you have everything you need to succeed right now except implementation I&#39;m talking about actually applying the concepts that you&#39;ve learned and having somebody to hold you accountable through that process that&#39;s what my mentorship is all about holding your hand and making it literally impossible for you to fail over a long enough time frame so if you&#39;re not happy with your current results you know who you are go click the link in the description take a look see if it&#39;s for you let&#39;s get back to the video so now when we Zoom back in the initial entry could be here or you can wait for the exact same thing back inside the breaker stop raid lower low higher high pull back into the breaker this up close candle right here up close then down Clos candle we also have a fair value Gap is here acting as a unicorn what do you think is probably going to happen this is when we expect to see a move towards buy side you can see we get a beautiful push higher and there we go buy side has now been taken now what I want you to recognize with this when it comes to fracability as well I know we&#39;re talking a lot about Breakers but there&#39;s a reason we&#39;re talking a lot about Breakers in a breaker video is because Breakers only work when you can apply all of these other things to it right Breakers are there a reason it is a good entry model but unless you have context a breaker does not mean anything a breaker will fail on you and you will question why did this breaker not work it&#39;s because you didn&#39;t have context that&#39;s in place to actually give you a reason why it should be holding or why we should displace to the upside or why we should it displace to the downside right another thing I want you to notice is this is byy side of the curve as well right this is a model inside of a model right you have sell set of the curve you have buy set of the curve this is a buy model in side of a bu model right this is fracability in price action what do you mean by fracability Justin fracability meaning infinite number of complex patterns that overlap for example if we&#39;re looking at a square right if I was to draw just a square here I could tell you that there&#39;s four squares in this square right there&#39;s 1 2 3 four right there&#39;s four squares that make up in this square but they&#39;re the exact same square right a square is a square but there&#39;s four in this square and guess what there&#39;s four four more in this square and guess what there&#39;s four more in this Square this is the market this is the market the market is completely fractal it is models inside of models inside of models and if have you ever wondered people don&#39;t understand what ict&#39;s logo is if we were to pull up ICT logo what is this it is a fractal pattern it is the exact same pattern inside it inside again inside again zoomed in zoomed in zoomed in zoomed in cuz it is is completely fractal the market is completely fractal right so how do we use that knowledge to our advantage it&#39;s understanding that when you align the external bias with the internal bias you can get efficient price action and you can get pretty much infinite opportunity because there&#39;s always going to be a trade to take if you know what a time frame is going to do if you know what the 5 minute is going to do Zoom down to the one minute and understand how to take an entry if you know what the 4 Hour or the 1 hour is going to do go down to a 30 minute go down to a 15 minute a 5 minute and look for the same thing right it&#39;s aligning these two things for example if I was to show you this chart right now and I was to say hey this is a 1 hour right because right now we&#39;re looking at a one minute chart if I was to tell you this was a 1 hour we would literally do the exact same thing I would go down into a 30 minute right I would go down or not in a 30 minut I would go down probably to a 5 minute and let&#39;s say this case you know a 15 second oh I don&#39;t think we have the data to support it but but this that would that is when I would go down and I would zoom in and I would look for an entry using the bigger time frame bias right we find the bias whatever on that time frame is we zoom in and we look for a trade right so I know we covered a lot just in this one little trade but it is extremely important to know a breaker doesn&#39;t matter unless you have context right and we know the context of this trade buy side resting Above Us sell side has been taken in an area in which we expect to reject we have a breaker formed and we have a other breaker formed in the exact same model right sparking the move towards the upside right so let&#39;s look at some more examples so now going back to this initial model that we drew there&#39;s something that we now want to add to this because this is a breaker in itself but what most people don&#39;t show you in the actual way that you should be using it right cuz this itself doesn&#39;t really do anything for you you&#39;re going to go in the market and you&#39;re going to look for this pattern and you&#39;re going to take entries right here long and then this is going to go straight down and you&#39;re going to get rain through you&#39;re going to be why why did that what happened what happened right so I&#39;m going to actually do you a favor here this is how you should be looking for it now we have proper context as to why this breaker should hold why should this breaker hold what did we add we added sells side and buy side liquidity sell side as you can see has now been taken we had some form of sells side liquidity that has now been taken now we get displacement to the upside now we have a breaker and and important that there is buy side resting above there is a reason for price to go higher right and one thing I want you guys to know is there&#39;s four reasons why markets move and every trade that you take should be a reason for one of these right so what are the four reasons number one the markets move to hunt liquidity number two markets move to rebalance to inefficiencies number three markets rebalance to equilibrium and number four markets generate liquidity every second of the day we are doing one of these four things okay so when you take a trade every bias or reason for you to be taking that trade should be aligned with one of those reasons for example if I am taking a long in this breaker I should be targeting either some sort of area of liquidity some sort of imbalance right cuz markets on liquidity markets rebalance inefficiencies markets I could be talking equilibrium of the previous price leg right right and to take this even one step further to even add more context right we&#39;re going to start developing an A+ strategy here right what is the more conviction that I can comp continue to add on to this that is going to make this an even better trade let&#39;s let&#39;s keep adding so the next thing added bigger time frame fair value Gap let&#39;s say there&#39;s sell side here right some sort of sells side liquidity has now been taken but we&#39;re also in a bigger time frame fair value Gap right so there&#39;s more of a reason why we should bounce here and why we should go to the upside cuz on a bigger time frame we&#39;re now in an area in which we expect to reject and we just took some form of sell set liquidity so we expect the market to most likely go higher here now right so we&#39;re continuing to add conviction here what is even more that we can look for and to give us more conviction or more confidence that this right here in this breaker is going to hold bullish and we will go higher we have now added another thing there is now an smt what is an smt I&#39;m going to link another video right all of these things are starting to come together right it&#39;s putting the pieces how can you have the most high confidence trade or high confidence reason to take a trade right trading is not about oh learning a breaker learning a fair value Gap oh there&#39;s an order block oh there&#39;s a fair all all of these Concepts don&#39;t mean anything if it&#39;s by themselves when you align them and you can start building conviction as to why the market actually moves and then being an observer and simply letting it come to you and saying hey there&#39;s an smt that just formed hey we just had displacement to the upside hey this just happened instead of actively looking for it because you&#39;re going to actively look for it and you&#39;re going to say hey I I think we just put in a low I think I think we&#39;re I think we&#39;re bullish right now and then you&#39;re going to take unnecessary trades and unnecessary losses when the market really hasn&#39;t shown you anything watch this will form this might not form as often as you as you want it to but it will and these are the high confidence setups that you can take because you continue to add conviction in reasoning as to why the market should right there&#39;s a reason we trade ICT Concepts this is not some astrological this isn&#39;t some astrology type [ __ ] where the stars are aligning we&#39;re finally seeing it this is showing us a reason for the price to actually move an algorithm runs this Market when we see a cracken correlation in the assets there&#39;s a reason for markets to move when we see sells side taken there&#39;s a buy side resting above us there&#39;s a reason for markets to move right all of these things show us and give us confidence that the more that we see them right all right let let&#39;s add another one 950 macro now I know I&#39;m going to I&#39;m going to complicate this video I&#39;m sorry for the people that just wanted to come and learning learn about a breaker block but I&#39;m going to I&#39;m going to over give you I&#39;m going to give you as much value as I can in such a short amount of time 950 macro if you don&#39;t know what a macro is I highly recommend going and searching it up I don&#39;t think I have a macro video maybe I plan on making one on YouTube we talk a lot about it in our private group so if you want to learn more in implementing these actual Concepts go check the link in the description check it out if you are having actually R do that so adding another piece of conviction 950 macro I don&#39;t think I have a video on Macros yet on my YouTube I might end up doing it I might not I do have a video on Macros in my mentorship and we talk a lot about them but this is an area in which when 950 macro opens up this is adding more conviction right because this is in time in which we expect the algorithm to hunt liquidity to move to reverse all of these things right so this is another form of conviction so now we&#39;ve kind of added a lot of things but I just wanted to do this to show you guys and give you guys an idea as to what this actually looks like right building conviction actually taking the setup me just showing you what a breaker is doesn&#39;t really do much right how am I actually going to implement it how am I actually going to trade it it&#39;s about recognizing is there a reason for price to go higher is there buy side is there an imbalance is there a reason for us to bounce is there an smt are we in a bigger time frame for Value Gap did sell side get taken right all of these things are more important than the breaker the breaker is the least important thing in this in this entire equation right all of these other things come first and that is what the people don&#39;t teach you and that is why people set you up for failure the breaker comes last everything else becomes first because the breaker simply is just the entry model there&#39;s got to be a reason for it to actually work and if there&#39;s no reason it&#39;s not going to so let&#39;s jump in and let&#39;s look at some more examples all right looking at another example looking at NQ right but this time we&#39;re actually going to talk about the confluences the reason why this works right number one notice we&#39;re looking at this high right I want you to just recognize are are we are we looking for a bearish breaker or a bullish breaker we&#39;re looking for a bearish breaker on a smaller time frame because this is our buy side and this is when we want to zoom in once this gets taken notice bigger time frame imbalance here on the 5 minute as well as all of this generated sells side liquidity here low here low here relative equal lows down here this is where we want to see buy side get taken rejection of the imbalance possible smt and then look to see a breaker form right so we let the market do its thing and here is when we add more context on ES we took this High to the left of us so now we have even more added conviction draw in liquidity is lower number one rejection of a bigger time frame imbalance number two number three buy side swept number four that&#39;s is that four yeah we&#39;re starting to get displacement to the downside so what&#39;s the breaker we&#39;re looking at here well low or high low higher high low or high let&#39;s mark this in first High gets put in first low higher high and then we start displacing to the downside and putting in a lower low now this becomes our breaker this down closed candle Market th pulls back again also what else is here a fair value Gap we respect both of these is what we&#39;re expecting Market comes up Taps the breaker as well as continuing to respect this fair value Gap this is when you can look to take a short in this breaker put your stop at whatever the recent imbalance is or you can put it up higher it is up to you what would you be targeting your first Target would be sell side liquidity and you would let your runner go to the next area of liquidity and then the next area of liquidity because all of this is generated sell side liquidity in which we expect to get taken Market rejects starts to sell all the way off and ends up running all the way to cell side but again the context as to why this works the context as to why we dump here it is not just oh you know Justin you chose these examples you know just to show it works you know but you can&#39;t actually do it live there&#39;s a reason why I chose the examples I&#39;m showing you because these are real high quality setups it is not just oh they worked out because there&#39;s because it&#39;s lucky right they worked out because they should have worked out there&#39;s a reason for them to work out the reason is the bigger time frame draw liquidity is bearish order flow is bearish when we zoom out here and we add even more context to this we do a complete top- down analysis 1 hour our 1 hour drawn liquidity is bearish why is our 1 hour drawn liquidity bearish because we&#39;re in a massive 1H hour fair value Gap there is a big smt on the bigger time frame there&#39;s a crack and correlation between the indices so our bigger time frame is bearish right and we&#39;re in an area in which we expect to reject being this 1hour fair value Gap so we zoom in once again what has happened we created relative equal lows acting as sside liquidity which we expect to get taken if I am looking to see sside get taken I want to zoom in and I want to look for a manipulation in the opposite direction of the draw liquidity being buy Side High gets put in pull back what do we respect consequent encroachment of this Wick if I was to draw this in this big wick a lot of the times when we have a big wick like this we will pull back in respect consequent encroachment consequent encroachment is the midpoint of this Wick we come down we respect it we move higher we go take buy side run all of the buy stops that were looking to be short targeting lower stopping in the out all before the actual move then we zoom in even more there&#39;s now an smt on the bigger time frame right this High gets taken on ES not on NQ and there&#39;s a f there&#39;s a bigger time frame for Value Gap here 5 minute fair value Gap we also reject so now we then zoom in high low higher high lower low pull back to the breaker block short Target liquidity there&#39;s a reason for it and if you want to throw in possible standard deviation projection I&#39;ll leave a link somewhere on the screen for standard deviation you can also see standard deviation lines up to the tick to the tick as to where we expect price to go which is sside liquidity so coincidence up to you to decide honestly the more I I I personally feel like it&#39;s blasphemy literally if if once you see it happen enough go in your chart I challenge you go in your chart and look for this to happen live because again the concepts don&#39;t matter unless you have implementation right and so many people struggle with breaker blocks with liquidity with psychology all of these things I can make as much videos as I want but unless you actually have somebody to go to and watch and ask questions and actually practice and look at the implementation of these ideas and of these Concepts because 95% of the people on social media and on YouTube and everything you watch have no [ __ ] clue what they&#39;re talking about they can&#39;t actually back up what they do they can&#39;t practice what they preach they don&#39;t practice good risk management they don&#39;t practice the actual trades that they take that is a problem so if you are still struggling right if you still struggling and you can&#39;t seem to understand or you understand the concepts but you&#39;re still losing or you&#39;re in your break even phase whatever it is I highly highly recommend letting me help you let me help you I do this for a reason I love seeing you guys finally [ __ ] put the pieces together and seeing the light bulbs go off and I&#39;m hoping something in this video did it for you but seeing that growth is what builds me satisfaction so I&#39;m going to leave a link in the description if you guys have been looking for someone that you can trust that you can go to with your problems who is going to tell you what you need to [ __ ] hear I&#39;m not going to sugarcoat anything someone that you need to hear I&#39;m going to leave a link in the description to my mentorship this mentorship is meant for people who want to actually learn the right way to trade not someone who&#39;s going to slack the [ __ ] off and think that it&#39;s just going to be handed to them because it still is going to take a lot of work but you&#39;re going to have access to 60 plus videos of everything I know daily charting sessions daily live trading sessions where you&#39;re going to be able to actually watch me trade live and you&#39;re going to be able to actually ask questions about your trading your specific trading what are you doing wrong saying Justin hey I took this trade on Friday I got stopped out I think I did this right I think I did this wrong whatever it is what do you think and I can show you and I can give you feedback and you can come on the call with everybody and it&#39;s an amazing Community where we all come together and we figure out what the problems are we help each other and it is a blessing if you enjoyed this video I think you&#39;ll also like one of my other ICT breakdown videos where I cover turtle soup you guys requested this one for months and it also is a really misunderstood concept I&#39;m going to link it somewhere around here now I&#39;ve got plenty more of these on the way so make sure you&#39;re subscribed thank you guys for your support and I&#39;ll see you in the next one

Transcript for:Notes on ICT Breaker Blocks

Transcript for:
Notes on ICT Breaker Blocks