How Smart Money Tricks Retail Traders
Ever placed a trade at a strong support level, only to see the price break through, stop you out, and then reverse? Frustrating, right? This is a common liquidity grab by smart money—big banks and institutions. ICT concepts help traders understand these moves and avoid getting trapped.
The good news? ICT Breaker Blocks can help you avoid these traps and trade with the big players. Let’s break it down!
What Are ICT Breaker Blocks?
ICT (Inner Circle Trader) Breaker Blocks show where the market structure shifts. These zones act as key reversal points after smart money takes liquidity.
How They Form:
- 📈 A strong price move in one direction.
- 🔄 A sharp reversal after retail traders get stopped out.
- 📍 Old support or resistance turns into a new trading zone.
These blocks highlight a shift in market flow, offering high-probability trade setups.
How to Find ICT Breaker Blocks
1. Spot a Market Structure Break
- 🔍 Look for a higher high (HH) or lower low (LL) suggesting a trend continuation.
- ❌ If price fails and reverses, smart money is likely behind it.
2. Find the Origin of the Move
- 📌 Locate the last bullish or bearish candle before the sharp reversal.
- 🏦 This is where big traders likely placed their orders.
3. Wait for a Retest
- ⏳ Price often comes back to test the breaker block.
- 🎯 A retest gives the best entry with low risk and high reward.
ICT Breaker Blocks vs. Order Blocks
Many traders confuse Order Blocks and Breaker Blocks. Here’s a quick comparison:
| Feature | Order Block 📊 | Breaker Block 🔄 |
|---|---|---|
| Formation | Before a strong move | After a liquidity grab |
| Market Role | Liquidity accumulation | Market structure reversal |
| Entry Strategy | Wait for price reaction | Enter on retest |
| Smart Money Signal | Shows intent | Confirms order flow shift |
How to Trade ICT Breaker Blocks
1. Use Breaker Blocks with Liquidity Concepts
- 💧 Look for liquidity pools (stop-loss clusters, equal highs/lows).
- 🔄 Price must grab liquidity before reversing into a breaker block.
2. Combine with Fair Value Gaps (FVGs)
- 📊 If a breaker block lines up with an FVG, the setup is even stronger.
- 📉 FVGs show price inefficiencies that smart money often fills before continuing.
3. Confirm with Volume & Timing
- 🔥 High volume during breaker block formation increases success rates.
- ⏰ Institutional moves happen during London and New York sessions.
4. Entry, Stop Loss & Take Profit
- 🎯 Entry: On a retest of the breaker block.
- 🚫 Stop Loss: Below or above the breaker block.
- ✅ Take Profit: At the next liquidity zone or key structure level.
Avoid These Mistakes!
- ❌ Ignoring Liquidity – Always consider liquidity grabs.
- ⚠️ Entering Too Early – Wait for a clear retest.
- ⏳ Trading in Low Volume Sessions – Smart money is active in high-liquidity times.
- 📉 Ignoring Market Structure – Always trade in the direction of the trend.
Mastering ICT Breaker Blocks for Consistent Profits
Understanding ICT Breaker Blocks can improve your trading by helping you:
- 🔍 Spot smart money moves.
- 🚀 Avoid liquidity traps.
- 🎯 Get better trade entries and exits.
📚 Want to learn more? Check out our guides on Order Blocks and Liquidity Grabs to refine your trading strategy!
Join the Discussion!
Did you find this guide helpful? 💬 Drop a comment below and share your experience trading ICT Breaker Blocks!
