Mitigation Block

Also: Mitigation

Definition

A mitigation block is structurally similar to a breaker but formed when price fails to take out a prior swing before reversing. It marks a candle at a failed continuation — where smart money had to mitigate an underwater position by giving price one more push, then reversing it. On retest, the mitigation block acts as a reference for delivery in the reversal direction.

Key characteristics

• Failed continuation — prior swing was not cleanly taken
• Forms at the candle that represents the failed push
• Polarity-flip behavior on retest, similar to [[Breaker Block]]
• Typically sits just short of a major liquidity level that was not reached
• Works on any timeframe when aligned with HTF bias

How it forms

Price is trending (e.g., down), bounces, fails to make a new lower low, and reverses higher. Because the prior swing low was not taken, institutional positioning from the last down-close candle needs to be mitigated on the way back up. That candle becomes the mitigation block. When price retraces to it during the new uptrend, the algorithm delivers price away from it.

How to use

Confirm [[Market Structure Shift]] after the failed push. Mark the mitigation block. Enter on retracement to the candle's high (bearish mitigation) or low (bullish mitigation). Stop beyond the extreme. Target the opposing liquidity or the next PD array. Works as a secondary entry model when OBs have already been consumed.

Common mistakes

• Confusing mitigation blocks with breakers — a breaker requires a violated swing, a mitigation block does not
• Using mitigation blocks inside consolidations without real structural context
• Not waiting for confirmation of the failed push before entering

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