Broken Tooth explanation and ICT Breaker insight



okay everyone and I'm just going to throw together a quick video and just basically going through the broken to set up which I kind of look for is one of my main concepts of trading I've been asked a few times on Twitter to explain it a little bit more detail I did however sort of refuses this for a while because a lot of people weren't actually reading the full breakdown and tutorial output on the blog and but I've caved in and I thought well I might as well go through a couple of setups and just to sort of show the you know the tick box exercises you need to achieve to get in the turtle soup sort of the the broken to set up it is actually quite an easy one to get in and it's not always an easy one to spot but once you sort of start repeating and you know getting a couple about test trades behind you you'll a you'll start to see these settles uncovered more and more a lot of it's probably relevant to how you trade already but what I like to do is have a strict set of rules which get me in and get me out and getting is easy but getting outs not so easy but what I want to try to do is try and get in to getting people to see the repeat setups happening over and over and just you know getting getting you into the mindset of taking the trade if you see it with without zero fear and just assuming that you know you've got everything right then in the run-up to the actual broken tooth that hopefully and you know with with a little bit of persistence overall you should be profitable in the end so the first thing I'm going to do is I'm just going to go over the breaker as as an actual an actual concept in itself because you know the number of people the number of new traders have come along and obviously I always advocated watching ICT videos from top to bottom on this website you know don't don't miss anything out watch them all watch them all twice watch them all three times you know you want to be filling at least one a4 spiral notepad full of notes and before you can you going into anything anything life I don't have a cake live trading obviously I need to make sure you're all aware of that I mean I'm you know I only put these out there reserved as a concept to take on a demo account and but anyway if you do have a feel like you want to move on to live trading you know you really do need to put in the time and put in the effort I mean you know you've got it you've got to spend at least at least six months before you even consider moving forward into live trading but anyway the breaker concept is quite heavily involved in the broken tooth so I think I bet just go through that and how I understand the the breaker and what's actually going on within that candle because it's easy to say well price does this and price does that but what's actually happening and why is it so important and why is it so influential on a lot of setups that we look for so obviously the first thing happens this is just quite a crude drawing I'm just threw together this isn't actually a chart but you know this could be anything or exactly and say we'll just say it's the pound dollar and so generally in general halves price obviously will create a low and price will you know will drop and we'll create a swing low and then we'll take off it could be from anything could be from a high timeframe block it could be from and you know taking out a previous low but what you do need and for a breaker to form is you need the price to swing low okay so number one here we have a swing life created and sell stops University generated liquidity so liquidity down here people of places stops anybody going along in this position will be feeling comfortable to put the stops here and price then rallies up and then what happened is in this block here number two strong selling drives price lower so this block as of now he's not a breaker at the moment it doesn't really have any solid resemblance to anything until price is driven and he's directly taking these stops down here so the selling that was initiated in this in this area in this level from here to here in this price range here which is obviously formed this this bullish candle prior to the down move that is at the moment an order block okay and you'll hair you'll hear ICT talking about these order blocks a lot and you know so this is where selling or buying occurs prior to the move whether it be higher whether it be lower but the fact that the price in here that price action within this candle has been designed and and basically has been manufactured deliberately to take these loads is what interest is as traders because has price drops and takes out these lows anybody who was long here has now had their stocks triggered and the market maker has basically absorbed their liquidity down here back into their flow so there could have been right you know short term but the math key doesn't like you to be right the market likes to take your lighter take your trades off you're like taking money off you and so the vast amount of money that had to be spent on you know the master that's not a cable our pound dollar that had to be sold here to drive price this low would have been enormous you know much more than we could sort of comprehend within a portfolio sizes so as price drops takes out these lows and then returns back to you know the original direction that the the market make was intended now once price at the moment if this price came up here and then rejected off this block and then sold down further that will just simply be an older block but because price has taken these stops sold taken salt and it's driven price through number four okay so number three sell stops that could is absorb Macke make a drug price high in pursuit of other targets so price has taken stocks moves price higher number four price moves through original area of selling so the orders within here these sell orders that have driven priced this still where you know the market is still absorbed and orders in this in this region you know in this range so the don't just disappear what happens is price will move through this area of vast orders and if you see price you know basically reaching back down into this area in back into this block and what it will do is it will take the other side of the trades that were generated here to take these lows so if they were selling here prices then being rebar to drive price into the direction the intended okay if price and obviously starts to drop back down again then what they're going to do is I want to rebuy these orders back now if you think about it this is gone a dual-purpose so this block is being used to sell okay prices then being driven back through it price is now being used here this block is now being used to rebuy those odors that was sold in the first place so the dual purpose is you know it's got one direction there and then the second time it wants to rebuy the orders back so you think about it it's more like a mitigation because they have sold they've gained profit by taking out these these Odyssey they have driven price higher so now all the orders that they claim down here liquidity absorbent is now worth more and now when price drives back down into this block okay they rebuy they they're they're basically buying back their own orders and driving price even higher now the way I like to see trades unfold is with breakers and you know you can you can use order blocks which are fantastic and you know you'll use those I mean the best the best thing to do really is what items find is when a breaker it is formed and drives price lower if there was another order block down here which he drove into and then it was absorbing the price in that obviously in that region as well so the basically absorbing the long orders and then drove the price higher you know that's why you're never looking for little things like that so anyway I won't go into a long and I just want to say try and cover the basics of the breaks to get ask so many questions but this does actually and you know get is quite an important thing to understand if you're looking at the broken to set up okay so this is a trader took on Friday um same same scenario okay it was here or I took the trade I'll just draw out the the h-file block and then refine it down and just to show you how I got into it so go down to age one okay now let's just imagine like it's light you know like like this none of this has happened so this is this is obviously hourly so anything you know beyond that line there I didn't know about okay so I'll just pop that out so this is this whole area is a high time foam block this is the h4 this is the h1 so I folks refine this down into this block here okay we've had this low sweat without that low wet so this one here just right on the top of that I won't draw the line because you can see is on top of the in the blue box who sees where the stop rate occurred and and this actually unfolded on the 5-minute time frame and you know like I said sometimes you've got to use a time frames to your experience you've got you've got to choose the best one sometimes your blocks an invisible and sometimes the breakers aren't visible until you go down to a small time frame and but as long as you got the higher time frame an idea in mind you know you got the higher time frame key levels and everything else sort of mapped out and it comes down if it basically sweeps a low into a high typing block that's when you want to be switched on that's when you'll be looking for a set up so in my opinion and the block that sort of initiated the move to sweep the lows because this low here and wasn't low enough to take the loads if you're not well the blue line is okay it was this here you see this long shout move down you've got this candle and you got a boom boom that's where the that's where the stop rate occurred okay so the first thing I did is I drew out this box okay and at the moment while price is moving forward this is just an older block okay the other what was used to sell price but for what purpose okay well the purpose at the moment is nothing okay right okay it's taking a low okay this is now become interesting so what happens is price then rejects okay any feel if you look how this this is what sort of got me interested as well prices move quickly straight through this area of price is rejected okay nothing really to sort of interesting there but the broken tooth obviously advocates that you look for price to trade above the breaker and to reverse it to unit or to offer support and to reject off it so the only time happened is here first one was there okay if you notice the red line the red line we have within the London open kill zone between 7 and 10 a.m. and so price moves up price comes down so impress ones up price ones down and rejects so what is this we mark out this high okay that is where I'm just quickly change this so I'm really anal about straight lines I can't have diagonal lines and so it rejected here broke this high this hair this our whole area here is your broken tooth okay as I showed you before it's not always easy to see that is your broken tooth that little bit there okay price then comes back down into breaker okay this break here used to sweep there can you see that price comes back down it's a break at a second time I got long here put my stop there it was about an eight pip spread a pip stop and I set my immediate tag it's fifty percent to come out there 38 okay so simple entry simple exit 38 into eight you know insult you've got a 4.7 pick 5.7 are I did leave a little bit in I think I left about 20 percent in and set to break in so once I took prophecy us at breakeven and it did go up a little more but I think it did sort of take me out in the end I think you just get I think this that came down I just closed it so I wasn't really so pleased with the way it was it was falling quickly and but you know if that'd been 100 percent you could have even gone and for the highs over here I know so yeah I did I do actually yeah I came out with 50 cent in there and I think I took 10 percent there and left the rest of it to room I thought was going to go you know maybe for these highs appear but I don't think he did and then on the pullback I just got out and but overall I got about four for punk more now from that trade and so you can see how it is sometimes difficult to see but you've just got to be very sort of um you know meticulous way you get in you even though it's broken above on this book and broken below as soon as this breaker offers support and it does actually hold price and then it rejects okay that is you that is your market structure level you want to be looking to break broken tooth is above that level any sort of you know return to this breaker you know you to get you're talking not very many pips you know you don't even have to risk a full amount of position on this even if you wants a risk one percent or half a percent and you know just until you get comfortable with spotting these and then you know coming out with those you know like a four point seven so seven and did a 1.5 percent risk so the 7th the 7% return straight on that trade there you know so yeah I mean you can see you can see the return on this be quite amazing let's go back out again and see if we can find something else see I mean I like to do another's I'm going to look for where loads have been taken into a – block and I'm going to see if it's a broken tooth set up actually available so let's try this one here okay so we've got a time frame block you can see the loads being swept okay so let's have a look let's zoom into there let's go into an hourly first so here we are come when we find that yes we can we find it down into the hourly okay so well taken into an hourly block okay I'm going to go down this into a 15-minute see what we get see if we get the option of a broken tooth okay all right then okay so you can see there the breaker the candle prior to the download that takes a lows into a – block it's going to draw that out and think a lot you guys can see this already without even trying to let me draw anything out you can see already so move through the breaker move down loads up this high is obviously where the broken tooth will occur broken tooth up here comes back down into the breaker BAM entry stop-loss 12 pips and off it goes okay I'm not gonna bother doing calculations for what the history what is not but you can just see how easy the concept works okay you just have to have the tick box exercise in your mind you have to have the fact that you've got a breaker or sorry you've got an area of selling is not not a breaker as such you know any any we're sort of beyond this this side you know it's only an older block at the moment so but once price has been used in that area to drive price lower to take a previous low into a – block it then brings price back up through this area okay as soon as price gets above there it's now deemed a breaker okay because any sort of retest of this area and they're going to offload the short positions and they're gonna buy them back so you can see that happening you know bang okay breaks is high sells back into it okay people obviously be terrified of this probably be selling the hell out of it chasing price going down back into there you buy it in in this breaker set you stop okay and then off it goes okay easy and I just picked that random so not mama might say I'm not actually so I like planning these just trying to make a like it works I mean a broken tooth fails you know that to be honest with you I've got so far and a 63 percent accuracy with this now if you can't make money making GaN a 63 percent accurate I mean this is this is me personally I mean I've this is forward tested not back testing I've had 63 percent accuracy so yeah I'm going to lose for trades I might lose for trades in a row then win six trades in a row you know it just depends and be you've just got to stick with it but if you can get a two and three hour on to those trades you've wiped out your losses well no you haven't – three oh if you get far are you wiped out all your losses you know the rest of them are all are all winners let's try again so see if we find any more okay we had a low swept they're in – nope that's not one no high timeframe block into there and this this that's pretty pretty soft flaccid isn't it so only thing that's going to give us anything I mean if this this occur it doesn't happen very often and you probably maybe get two or three a week if you're looking and but when it does like say you've just got to take them without without any sort of hesitation and just play them let's see if that one gives us anything right okay so I can see already it's not going to it's not a quick mover but sometimes they do take a while to unfold so h-file block here I'll just pop that all the way out we've got a low here and the loaves taken so I'll go down to h1 okay if I refine it any further we're not going to get touch so we'll leave it as a h4 okay sometimes it's nicer to refine it just to sort of give you a little bit of a you know bit of a tighter sort of area to watch and well I say an h4 candle is just absolutely fine and so this area here is where we anticipate to see a broken tooth we've had a sweep of previous lows I'd say I don't know if this is going to work out but I'll give it a go and I'll go down to a 15-minute let's see what we get okay right this candle here draw it out okay what's price done price has been used here to sell its what the low is come back up it's invalidated okay so price has actually come through it hasn't found support of this so that obviously the odd is used here weren't strong enough to hold as a level support here and it's invalidated there but and this is a but now prices move back up and it's found support at this level and what time were we on there 215 okay so price if you look here at this high this breaker didn't hold the first time okay but if you notice now he's starting to hold so they're now using this then basically what happened is whilst price moved back through to this they weren't interested in pairing there in the orders um you know at this time so the drug price up again I mean usually I like to see it first time around I mean to be honest with you I tend not to take trades if it's not if it's not hitting the first time around and it's you know we tend to solve not even be interested but just as an example you know you can just say that price is obviously found support draw back up there found support then it's created a high okay the highs being taken and it's found support and then it's obviously reloaded there so you're technically could have that trade there happen at 7:45 so you know London open and perfect opportunity to get on board and aiming for those highs so boom boom you know six seven six and half pit stop and 17 people mean yeah I don't even think it got to the highs I think yeah well they bullet went into it I didn't yeah but not before I took you out so yeah not not the best example there so that's not really pulling in with the best I mean you you could have taken some here and you know I advocate taking profits very regularly and don't get greedy nothing you can get a home where every time you need to be you need to be disciplined to take something out so anyway that's another one so I'm just trying one more example okay so it's time for one more and we'll just go back a bit so if we can see anything prominent let's look at this one here before this before this sell off so you forgot a broken tooth in here somewhere I'll just highlight this hi see if you run into or anything hi time frame zoom out a little bit obviously you can see he's already cleared this high here and but with with the price that's driven so much further passer means a 50 tick move I think probably uses something else there so scroll back so yeah so you can see there that hi there has been taken I mean that that's a that's a massive stop rate is that in my opinion because without all these heist were obviously from from the point of origin down here and without all these highs taken with our dollies let's just see if we actually run into a high time frame block as well because that obviously give us the and yeah if you lot with the line is just moved into and just remove this we've actually got there look a breaker you were not these stops here and we're not these stops there so we know the breaker the vine initiate their run the stops run the height okay so I will just have to quickly throw a couple lines on that so we get an idea of where that is okay wrong place right okay so here and where was the breaker amongst all this well it's originated there that's where price originated and do we have something in there to get on board so probably go down to a thirty minute just to see if we got anything okay well looking at it now this candle here wasn't wasn't the push before you know the the last bearish candle probably season I'm gonna dial that one cuz that's you know you can't really use that as a candle and it straight from so this area here is the breaker is the big before the push okay that's what I initiated so hi taken high time for block breakdown okay not trading this we want to see something around here but would be wrong obviously more high probability so yet it occurred let's have a look if you can see their price drop below the breaker so we're now below the price price move back into the breaker found found the resistance broke down so this level here anything below here that there that is your there that's your broken tooth back up again okay price above the highs here so take one tick move pip stop and then a breakdown okay it's a quite high stop-loss in this occasion and but if you look further on obviously did payout when you tag it so probably something like these lows here I mean look at those buses liquidity to heaven so okay it's a two-hour you know it's not a massive trade it's not a big fireball that we all like to take but it's a two-out rate and you could quite happily come out there with your full position you could leave twenty percent in to the remainder it's up to and zooming out of that yeah I mean there are obviously the points you may you want to tag it and for maybe a three hour or a four hour but I mean you know this this thing is you know you've got you've got a remote I so before you got at a profits and you've got to be not very greedy and in getting out of this thing so the entries are simple it's just knowing where to spot them so I hope that's helped I'm not I say I'm I find it hard to explain it myself it's just how I sort of internalized how I see price breaking down and I do really like using breakers in my trading I don't particularly like just selling straight affordab locks or you know the concepts that do involve just straight order block selling or buying a mop I am more prone to taking breaker breaker trades and because of the dual function of the breaker and because of you know you can quite easily just see the markets the mechanic is actually using that area of price to do two jobs so I'll leave it there and if anybody's got any further questions you know I'm open to wearing discussion it on the blog or on the main Twitter feed and I just hope that made it some sense I mean it to me it felt kind of rushed but LM I laid it with you and hopefully you'll learn you look gain something from it okay you

25 Comments

  1. mike mason said:

    Thanks for this Midge. This completely helped me break thru and become a profitable trader. backtested for weeks on end and its the best setup there is. all the best ledge

    June 27, 2019
    Reply
  2. Ankit Gupta said:

    Thanx midge gaunt for this video I really appreciate this for making this video and one thing I want to ask how I get those indicators that divider and the other one on the chart you applied please share that link or if have please give me that will be very helpful.. ๐Ÿ™

    June 27, 2019
    Reply
  3. luckie said:

    Great content brother, can you please leave me your email address or telegram no, would love to talk to you more about forex, thanks!

    June 27, 2019
    Reply
  4. ุฌูˆ ุฌูˆ said:

    do you enter with limit orders?

    June 27, 2019
    Reply
  5. hektora said:

    IF "they" sold at point 2 and closed point 2 at point 3 – at point 2 is nothing now! So there is no buiyng back anything! So what is the logic at 4?

    June 27, 2019
    Reply
  6. predictor mnisi said:

    awesome vid, can I please get the link to download that indicator with red n blue lines please.

    June 27, 2019
    Reply
  7. Yussuf Abdirizak said:

    Where can i find that day of the week and session divider indi ??

    June 27, 2019
    Reply
  8. TheJokerh5 said:

    Great Video, thanks for sharing!
    After Forwardtesting this for a while, how is the accuracy of this pattern now? ๐Ÿ˜€

    June 27, 2019
    Reply
  9. Mark J said:

    it is funny how all this kill zones, ict this ict that, and even with the help of a broken tooth, ict never fulfilled any of his claims ,,,except – he was milking on subs :-)))that is a true slippery master of disguise

    June 27, 2019
    Reply
  10. Hein H.A said:

    how do you backtest it on different TF?

    June 27, 2019
    Reply
  11. Sarayee said:

    Great Video. Please post more educational videos. I know it is time consuming to record, edit, upload and post videos but your explanations are awesome and simple.

    June 27, 2019
    Reply
  12. Ryan Wessel said:

    This is great!

    Most insightful part for me, is knowing that price has to be supported by the breaker, before moving away. That part was blurry to me. Thank you

    June 27, 2019
    Reply
  13. jimmster1011 said:

    you a leeds lad?

    June 27, 2019
    Reply
  14. Diego Linde said:

    Going back to the opening (conceptual) diagram: another scenario is:
    After 1 (low) is 'swept', one would have indication that the sellers are in charge with permission to short at 4 (order block and source of the move that swept 1) when Price 'retraces/pulls-back.
    Some teach that and examples of that can be found to prove that is true and works, too.
    However, here it doesn't and is working on the opposite premise that Price in fact sweeps 4 – the source or order block that took out 1 (stop losses) and proceeds higher.
    I've long been curious and interested in being able to distinguish between the two. How to read and anticipate correctly which scenario is in fact being played out?
    A fakeout, essentially, that sweeps the lows only to proceed back higher as you've shown or a break of the lows that indicate Price is going lower, where the engulf of said low is proof of momentum (strength) and continued direction of Price.
    I guess context is important but wonder whether you'd have anything to say to that?

    June 27, 2019
    Reply
  15. Ahmed Khatarey said:

    Thanks for your explaination , i get lost with ICT …because he speaks allot …i want to know exactley what are the setups …. 1 looks like this , 2 looks like that and so on … so if you have them i appreciate it if you can send it to me

    thanks allot

    June 27, 2019
    Reply
  16. Matt Lewis said:

    Awesome vid Midge, missed its release but just caught it now. Breakers are making more and more sense now thanks to you and David ๐Ÿ™‚ Thanks

    June 27, 2019
    Reply
  17. Pierre G said:

    I've been watching this once per day for 3 days straight now. I need it imprinted in my brain. This was a ah ha moment for me. This is what really made me understand the ICT breaker after 5+ mths of studying ICT. Thank you very much for this video.

    June 27, 2019
    Reply
  18. TRAD3S said:

    Top stuff Midge, cheers mate

    June 27, 2019
    Reply
  19. Sweet Praise said:

    Quick question Midge , At point 5 point of entry sometime price forms an order block above or below the breaker price zone,what do you then ? do you go for the order block or you still anticipate entry on the breaker. Thanks

    June 27, 2019
    Reply
  20. Tsweet Praize said:

    I LOVE THE INTRO GRAPHICS

    June 27, 2019
    Reply
  21. Sweet Praise said:

    Thanks buddy ,this is very much appreciated .

    June 27, 2019
    Reply
  22. steve fitchett said:

    Cheers Midge. Really great explanation of the principal. I know it's a pain to make the videos but helps a lot and really appreciated.

    June 27, 2019
    Reply
  23. 1985djshine said:

    so nice of you taking ur time to do this MIDGE! God bless

    June 27, 2019
    Reply
  24. John Wainaina said:

    you Midge Gaunt you are a ledge

    June 27, 2019
    Reply
  25. TraderSZ said:

    chipped tooth

    June 27, 2019
    Reply

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