Market StructureAdvanced#SMC#ICT
Mitigation Block
M
Definition
An informal label for a previously marked chart zone that price breaks and later revisits. It does not show that an earlier order existed, was unfilled, or was closed at break-even.
Source reviewed
- CFTC: Trading system warning opens in a new tab
Supports: CFTC explains that historical-data trading systems cannot guarantee profits, supporting a test of a fully specified chart rule rather than an inferred participant narrative.
Concept Diagram
Key Takeaways
1
A mitigation block is a selected break-and-revisit sequence, not a verified order history
2
Price data cannot reveal unfilled orders, participant inventory, or break-even exits
3
A revisit is observable; future support or resistance is an unverified interpretation
4
Evaluate a fully specified rule out of sample with realistic execution assumptions
Practical Example
A study marks a pre-defined 1-hour range, records a close through it, and later records a revisit. It logs whether a proposed rule performs across future samples with costs and losing cases. The study does not infer who traded the range or that the revisit offers an entry.
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Related Terms
Market Structure
Inducement (IDM)An informal chart label for a local move followed by a failed breakout or reversal. The chart alone cannot establish that it was designed to induce a trader or that any participant intended the outcome.
Market Structure
Order Block (OB)An informal chart zone, often drawn from a candle or range preceding a later move. It does not identify an order, its owner, its size, or an institutional entry point.
Market Structure
Breaker BlockAn informal chart label for a selected zone that price later breaks and may revisit, sometimes after crossing a prior high or low. It does not prove a stop hunt, manipulation, or a trend change.
Market Structure
DisplacementAn informal chart label for a rapid directional move over a chosen interval. It does not establish institutional intent, participation, or the future direction of price.
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