The Evolution of a Zone
Markets don't always move in straight lines. Sometimes, institutional orders fail, or sentiment shifts aggressively. When an Order Block is broken, it doesn't disappear—it evolves into a new type of zone.
1. The Breaker Block (BB)
A Breaker Block is a failed Order Block that was broken with high momentum. It represents a "Trap" that worked too well. When price breaks through a Bullish OB, it often returns to that same zone to use it as Bearish Resistance.
The Power of the Breaker
Breakers are considered higher probability than standard OBs because they carry the momentum of the break and the liquidation of the traders who were trapped in the original zone. They often mark the reversal of the trend.
2. The Mitigation Block (MB)
Similar to a Breaker, but it occurs when price fails to make a new High (in an uptrend) or Low (in a downtrend). It signifies a weakening trend. Institutions use these zones to mitigate their remaining positions before a trend reversal without a liquidity sweep.
3. The Rejection Block
A Rejection Block focuses on the long wicks at significant swing highs or lows. Institutions often hide their 'limit' orders within these wicks rather than the candle bodies to trap early retail buyers/sellers before snapping the price back.
Why focus on wicks?
Wicks represent price 'rejection'. On a lower timeframe, those wicks are actually small-range consolidation zones where institutional orders were 'wicked' into the market.
| Block Type | When it forms | Trading Role |
|---|---|---|
| Standard OB | Origin of a new trend | Primary Entry Zone |
| Breaker Block | Broken OB with momentum | Role Reversal (S becomes R) |
| Rejection Block | Major swing high/low wicks | Liquidity Trap Entry |
