Mitigation Blocks

What is a Mitigation Block?

A Mitigation Block develops when price violates an existing Order Block to collect liquidity and then swiftly reclaims the structure in its original direction. This represents an advanced form of institutional re-entry, where the market revisits a prior zone to fill or "mitigate" unexecuted orders. Mitigation Blocks provide valuable insight into how large entities handle order imbalances while maintaining trend continuity.

Unlike standard Order Blocks, Mitigation Blocks form after a deliberate liquidity grab. The brief violation of structure serves to trap retail traders who assumed the OB failed. Once the liquidity is collected, institutions re-enter in the original direction, creating a refined continuation opportunity. This concept explains why price sometimes pierces an Order Block before resuming the move it’s not invalidation, but intentional mitigation.

Mitigation Blocks often occur within broader Fair Value Gaps or around structural pivots such as swing highs or lows. Their formation usually follows a strong displacement, a retracement, and a swift reversal. When this pattern aligns with volume spikes or momentum divergence, it provides a strong technical foundation for institutional continuation setups.

For traders, recognizing Mitigation Blocks allows for more precise entries and tighter risk management. They are particularly effective when used in confluence with liquidity sweeps and FVG fills. By focusing on how price reacts after a sweep, traders can identify whether the move represents true mitigation or a potential reversal, offering a deeper layer of accuracy in Smart Money trading models.

How to Configure Mitigation Blocks?

Show Labels - Toggle to show/hide labels.

Mitigation Type - Choose how strictly the indicator confirms that a block has been mitigated (filled).

• Close Inside - Block is mitigated when candle closes inside the block.
• Wick Inside - Block is mitigated when the wick (high/low) touches inside the block.
• Close > 50% - Block is mitigated when the candle closes past the mid-point (50%) of the block.
• Wick > 50% - Block is mitigated when the wick (high/low) crosses the mid-point (50%) of the block.
• Close Outside -Block is mitigated only when the close happens fully outside the opposite side of the block.
• Wick Outside - Block is mitigated only when the wick crosses (high/low) outside the opposite side of the block.

Colors - Set of colors for the three block states

• Bullish Mitigation Block - Applied to bullish blocks that are active.
• Bearish Mitigation Block - Applied to bearish blocks that are active.
• Mitigated Block - Applied to blocks that have been filled.

Max Mitigation Block - Controls how many blocks are to be displayed on screen.