Market StructureAdvanced#SMC#ICT
Mitigation Block
M
Definition
A failed order block that didn't hold price but now acts as a future support or resistance level.
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Concept Diagram
Key Takeaways
1
A mitigation block forms when an unfilled order block is partially mitigated by returning price action
2
It represents institutional orders that were not fully filled on the initial move
3
Price tends to respect mitigation blocks as weaker support compared to fresh order blocks
4
Traders use mitigation blocks for secondary entries with tighter stop losses
Practical Example
An order block at $60K is retested and price bounces — but only to $61K before dropping back. This partial mitigation weakens the level. A second retest at $60K is the mitigation block entry with a stop at $59,700.
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Related Terms
Market Structure
Inducement (IDM)A minor pullback or structural point designed to 'induce' retail traders to enter too early before a real institutional move.
Market Structure
Order Block (OB)The last candle in the opposite direction before a strong directional expansion, marking institutional entry points.
Market Structure
Breaker BlockSimilar to a mitigation block, but it involves a stop hunt (liquidity grab) before the structure is broken.
Market Structure
DisplacementA powerful move in price that shows clear institutional intent, leaving multiple Fair Value Gaps behind.
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