An order block or FVG that price returns to 'mitigate' or fill before continuing its intended direction.
Deep Dive
A mitigation block is an order block that price has partially entered or 'mitigated' before continuing in the intended direction. When price creates an order block and then returns to it, the initial touch is the mitigation. Price may react at this level or continue through to fully mitigate (close) the order block.
The concept of mitigation is based on the idea that institutions often cannot fill all their orders at once. They place orders at a level, price moves away, and they need price to return to fill remaining orders. This creates high-probability entry zones when price mitigates these areas.
Mitigation can be partial (price touches the order block but doesn't close through it) or full (price closes through the order block). Partial mitigation often provides entries for continuation. Full mitigation suggests the orders are filled and the level may lose significance.
Why It Matters
Mitigation provides optimal entries as price returns to institutional order areas.
Related Terms
- Order Block — Order Block is a trading concept. Order Block: A specific candlestick or series of candlesticks on a chart that represents a key institutional order flow point
- Breaker Block — A Breaker Block is a specific type of order block that forms after a market structure break, indicating a shift in market sentiment. For example, if price break