$npx -y skills add SKE-Labs/agent-trading-skills --skill breaker-blocksDefine and test breaker-block polarity-flip setups. Use when a previously labeled candle zone is crossed and later retested as support or resistance.
| 1 | # Breaker Blocks Trading |
| 2 | |
| 3 | A discretionary label for a candle zone that is crossed and later tested from the opposite side. It is a support/resistance hypothesis, not evidence of trapped or institutional orders. |
| 4 | |
| 5 | ## Identification |
| 6 | |
| 7 | ### Bullish Breaker (Failed Bearish OB) |
| 8 | 1. Bearish order block forms |
| 9 | 2. Price returns and breaks **through** the OB aggressively (displacement) |
| 10 | 3. The broken OB flips to support (bullish breaker) |
| 11 | 4. Trade longs when price returns to this zone |
| 12 | |
| 13 | ### Bearish Breaker (Failed Bullish OB) |
| 14 | 1. Bullish order block forms |
| 15 | 2. Price returns and breaks **through** the OB aggressively (displacement) |
| 16 | 3. The broken OB flips to resistance (bearish breaker) |
| 17 | 4. Trade shorts when price returns to this zone |
| 18 | |
| 19 | ### Testable Features |
| 20 | |
| 21 | - Normalize break distance and speed by ATR and elapsed bars. |
| 22 | - Define the zone from exact OHLC fields and an objective swing rule. |
| 23 | - Record overlap with an FVG, higher-timeframe state, and retest count as candidate features—not quality grades. |
| 24 | - Use a closed-bar crossing buffer and prevent future bars from changing the original label. |
| 25 | |
| 26 | ## Workflow |
| 27 | |
| 28 | 1. **Find a failed order block** using candle data: |
| 29 | ``` |
| 30 | get_candles_around_date(symbol=<symbol>, exchange=<exchange>, interval=<interval>, date=<date>) |
| 31 | ``` |
| 32 | 2. **Confirm the break** with the predeclared swing and close-plus-buffer rule |
| 33 | 3. **Mark the breaker zone** using `draw_chart_analysis` with `demand` (bullish) or `supply` (bearish) |
| 34 | 4. **Wait for price to return** to the zone from the opposite side |
| 35 | 5. **Enter with LTF confirmation** (structure shift or rejection) |
| 36 | 6. **Stop loss** beyond the breaker zone |
| 37 | 7. **Target** next liquidity level or POI |
| 38 | |
| 39 | ## Evidence and Validation |
| 40 | |
| 41 | - Treat the setup as a testable hypothesis, not a prediction. Define thresholds, entry, invalidation, and exit before evaluating outcomes. |
| 42 | - Calibrate on the same instrument, venue, session, and timeframe. Use closed candles and a held-out or walk-forward sample; record every variant tried. |
| 43 | - Include spread, fees, slippage, borrow or funding, partial fills, and latency. Reject the setup when net expectancy is not positive or depends on one narrow parameter. |
| 44 | - Return observed inputs, missing data, cost assumptions, entry, invalidation, exit, and a valid, watch, or no-trade status. |
| 45 | - Research basis: Treat breaker blocks as a discretionary support/resistance labeling convention. [Lo, Mamaysky & Wang](https://www.nber.org/papers/w7613) supports objective pattern testing, not claims about hidden institutional intent. |
| 46 | |
| 47 | ## Key Rules |
| 48 | |
| 49 | - Do not claim knowledge of trapped traders or hidden order intent from candles alone. |
| 50 | - Define displacement in ATR and bars before testing. |
| 51 | - Test first and later retests separately rather than assuming only the first works. |
| 52 | - Return `no trade` when swing, break, retest, liquidity, or cost definitions are incomplete. |
| 53 | |
| 54 | ## Related Skills |
| 55 | |
| 56 | - **order-blocks** — Breakers are failed OBs; understanding OBs is prerequisite |
| 57 | - **fair-value-gaps** — FVGs created during the break add confluence to breaker zones |