Mitigation Blocks

Mitigation blocks are the order blocks that failed to create a BOS and create LH in an uptrend and HL in a downtrend.

Similar to order blocks, the mitigation blocks are of two types

Bullish Mitigation Block

A bullish mitigation block in forex occurs when there`s a failed collection of sell-side liquidity on previous lows in the market. A high low is formed after the price has failed to collect sell-side liquidity on previous highs due to an order block or rejection block. So this means a bullish mitigation block results from the failed collection of sell-side liquidity on previous lows due to an order block or rejection block. Pushing price up to collect buy-side liquidity on the nearest previous high, thus forming a higher high.

Bearish Mitigation Block

Bearish Mitigation Block

A bearish mitigation block in forex occurs when a failure swing in the market results in a lower high being formed after the price has failed to collect buy-side liquidity on previous highs due to an order block or rejection block. So this means a bearish mitigation block results from a failure swing due to an order block or rejection block. Pushing price down to collect sell-side liquidity on the nearest previous low, thus forming a lower low

How to Trade Mitigation Block

The process for trading the mitigation block is similar to order blocks. Extend the mitigation block and wait for the price in the mitigation zone. Once you see a reversal signal, you will enter the trade.