Most people get faked out and wonder why the market keeps running their stops.
The answer? They're missing the Breaker Block — one of the cleanest high-probability setups in Smart Money trading.
Here's exactly how it works 👇
🔴 Phase 1: The Trap Is Set
Price makes a clean bearish move — looks like the market is going down forever. Retail traders short. Smart money is watching.
Price coils between Support & Resistance, choppy, directionless. This is accumulation disguised as confusion.
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⚡ Phase 2: The Fake Out (This Is Where You Lose Money)
Price violently breaks below Support — into the Bullish Liquidity zone.
Stop losses are triggered. Panic sells kick in. Retail traders are wiped out.
This is NOT a breakdown. This is Smart Money collecting liquidity before the real move.
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🟢 Phase 3: The Breakout + Breaker Block Forms
Price reverses HARD with a clean bullish move, smashing through the previous resistance zone.
That old resistance level? It just flipped into your Breaker Block — your entry zone.
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✅ How To Trade It
Entry: When price retests the Breaker Block (old resistance now acting as support)
Stop Loss: Below the Breaker Block zone (tight, defined risk)
Target: Previous highs / next liquidity level above
Risk: Reward: Easily 3:1 or better
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💡 Why This Works
Smart Money doesn't buy at breakouts — they create them. The fake-out below support is engineered to grab liquidity before launching price upward.
When you understand this, you stop being the liquidity and start trading with the institutional flow.
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🔑 Quick Checklist Before Entry:
✔ Clean impulsive move (up or down)
✔ Price sweeps a liquidity zone (fake out)
✔ Strong reversal candle / breakout
✔ Price retests the broken level (your Breaker Block)
✔ Entry confirmed — Stop defined — Target set
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Save this post. The next time you get stopped out on a "breakout," zoom out — you might be looking at a Breaker Block setup forming right in front of you.
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Not financial advice — always manage your risk.
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