FREE Order Block Breaker Indicator

[Mpot]

Order Block Breaker Indicator for MT4: A Guide to Market Structure and Reversal Trading

The Order Block Breaker Indicator for MT4 is a tool designed to help forex traders identify critical points in market structure where trends may reverse or lose momentum. By recognizing Bullish and Bearish order blocks, the indicator highlights potential areas for BUY and SELL trades, making it valuable for advanced and beginner traders alike.

What is an Order Block?​

An order block is a zone formed by the last Bearish candle before a Bullish price move (for Bullish order blocks) or the last Bullish candle before a Bearish move (for Bearish order blocks). These blocks serve as support (for Bullish blocks) or resistance (for Bearish blocks), indicating areas where price reversals are likely to occur.

Key Features of the Order Block Breaker Indicator​

• Visual Cues: The indicator marks Bullish order blocks in navy blue and Bearish order blocks in maroon.
• Alerts: Provides message, sound, and push notifications whenever a trading signal is generated.
• Time Frame Compatibility: Functions well across intraday, daily, weekly, and monthly charts.

How to Trade Using the Order Block Breaker Indicator​

1. BUY Signal:
   
   • When price enters a Bullish order block, a potential price reversal is expected. A BUY entry can be placed within this block, validated by price action and other indicators.
   • Stop Loss: Ideally set below the order block or the most recent swing low.
   • Take Profit: Can be determined based on a favorable risk-reward ratio or at the next resistance level.
2. SELL Signal:
   
   • A Bearish order block signals a potential reversal in a SELL direction. Traders may open a SELL position within the block.
   • Stop Loss: Best set above the order block or at the previous swing high.
   • Take Profit: Similar to the BUY strategy, traders may aim for a positive risk-reward ratio or the next support level.

Trading Tips for Using the Indicator​

• Zone Trading: Order blocks are represented as zones rather than fixed lines, allowing traders flexibility to adjust entry and exit points within the zone.
• Counter-Trend vs. Trend Continuation: Blocks that align with the existing trend tend to offer higher reward potential compared to counter-trend reversals.

Conclusion​

The Order Block Breaker Indicator for MT4 serves as a dynamic support and resistance tool, utilizing order blocks that frequently prompt price reactions. Traders should use additional indicators or price action techniques for confirmation, as not all order blocks guarantee price reversals. This indicator is straightforward to install, free to download, and highly useful for traders who focus on price action and reversal trading.