Breaker blocks
Order Blocks & Premium/Discount
A failed block flips roles
When an order block fails and price closes straight through it, that broken zone can flip roles, just like an inversion FVG. That flipped zone is called a breaker block.
Trapped traders fuel the flip
A failed bullish order block that flips becomes bearish resistance going forward. The traders who bought that zone as support are now trapped and looking to sell on the way back up.
A second chance at a failed zone
Breaker blocks give a second chance at a failed zone instead of discarding it. Watching for the flip turns a losing signal into a fresh, valid setup in the opposite direction.