The Breaker Block Pattern

A bullish breaker block pattern consists of a low, a high, a lower low, and a higher high. Ideally, the lower low that leads to a sharp reversal forms at a key level or point of interest. This setup is effective because it generates a lot of liquidity in both directions before making its move.

A bearish breaker block follows the opposite structure: high, low, higher high, and lower low, with the higher high ideally forming at a key level before a sharp decline.

This pattern works well because it attracts traders on both sides—those trading breakouts and those looking to fade the move—leading to liquidity accumulation, which facilitates the final directional push.