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Breakerblock

Mitigation Block in Forex Trading: What It Is and How to Use It?What a Mitigation Block Is, and How You Can Use It When Trading Forex? Understanding specific market mechanisms like mitigation blocks may enhance strategic decision-making. This article delves into the concept of mitigation blocks, detailing their definition, function, and practical application within forex. Definition and Function of a Mitigation Block A mitigation block in forex trading refers to a specific order block on a chart that indicates where previous movements have stalled and reversed, marking it as a potential area for future market turns. This concept within the Smart Money framework is crucial for traders looking to manage their positions by taking advantage of strategic entry and exit points. The idea behind these areas is rooted in the dynamics of supply and demand within forex. When a currency pair reaches a level where buyers or sellers have previously entered the market in force, causing a reversal, it suggests a potential repeat of such actions when the price returns to the area. Characteristics and How to Identify a Mitigation Block Mitigation blocks can be bullish or bearish, each with distinct characteristics: - Bearish Mitigation Block: This type forms during an uptrend and is identified by a significant peak followed by a decline and a failed attempt to reach or surpass the previous high, creating a lower high. When prices drop below the previous low, the order block above the low becomes mitigation. It may be characterised by an increase in selling volume as the price approaches the level, signalling resistance and a potential downward reversal. - Bullish Mitigation Block: Conversely, a bullish type is established during a downtrend. It is characterised by a significant trough, followed by a rise to form a higher low, and a failure to drop below the previous low. As the pair moves up, the order block below the high marks mitigation one. This area often shows an increase in buying volume as the price approaches, indicating support and a potential upward reversal. Mitigation Block vs Breaker Block Mitigation and breaker blocks are both significant in identifying potential trend reversals in forex trading, but they have distinct characteristics that set them apart. A mitigation block forms after a failure swing, which occurs when the market attempts but fails to surpass a previous peak in an uptrend or a previous trough in a downtrend. The pattern indicates a loss of momentum and a potential reversal as the price fails to sustain its previous direction. On the other hand, a breaker block is characterised by the formation of a new high or low before the market structure is broken, indicating that liquidity has been taken. This means that although the trend initially looked set to continue, it quickly reverses and breaks structure. In effect, a breaker appears when the market takes liquidity beyond a swing point before reversing the trend. A mitigation appears when the price doesn’t move beyond the trend’s most recent high or low, instead plotting a lower high or higher low before reversing the trend. How to Use Mitigation Blocks in Trading Areas of mitigation in trading can be essential tools for identifying potential trend reversals and entry points. When they align with a trader's analysis that anticipates a reversal at a certain level, it can serve as a robust confirmation for entry. Traders can effectively utilise these zones by simply placing a limit order within the area once it is considered valid. Validation occurs after a new peak or trough is established following the initial failure swing that forms the mitigation area. If a liquidity void or fair-value gap is present, the trader may look for such a gap to be filled before their limit order is triggered, potentially offering a tighter entry. Stop losses might be placed beyond the failure swing or the most extreme point. Furthermore, if a mitigation block is identified on a higher timeframe, traders can refine their entry by switching to a lower timeframe. This approach allows for a tighter entry point and potentially better risk management, as it offers more granular insight into the momentum around the area. Common Mistakes and Limitations While these blocks are valuable for forex trading, they come with potential pitfalls and limitations that traders should know. - Overreliance: Relying solely on mitigation blocks without corroborating with other trading indicators can lead to misjudged entries and exits. - Ignoring Context: Using these zones without considering the broader market conditions may result in trading against a prevailing strong trend. - Misinterpretation: Incorrect identification can lead to erroneous trading decisions, especially for less experienced traders. - False Signals: Mitigation blocks can sometimes appear to signal a reversal but instead lead to a continuation of the trend, trapping traders in unfavourable positions. The Bottom Line Understanding mitigation blocks offers traders a strategic edge in navigating the forex market. They can be vital for recognising potential price reversals and improving trading outcomes. FAQs What Is a Mitigation Block? A mitigation block in forex trading is an order block that identifies potential reversal points. It signals where a currency pair has previously stalled, indicating strong buying or selling pressure, suggesting a potential for similar reactions in future encounters with these levels. How Do You Identify a Mitigation Block? Mitigation blocks are identified by analysing charts for areas where previous highs or lows were not surpassed, leading to a reversal. Traders look for a sequence of movements, including a swing high or low followed by a retracement that fails to exceed the previous swing. What Is the Difference Between a Breaker Block and a Mitigation Block? While both indicate potential reversals, a breaker block forms when the price makes a new high or low before reversing, suggesting a temporary continuation of the trend. In contrast, a mitigation block forms without creating a new extreme, indicating a direct loss of momentum and an immediate potential for reversal. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Education
by FXOpen
1
Gold 1M & 15M Bearish Breaker Block Setup, Targeting 3,202 ZoneI’ve marked a bearish breaker block on the 1-minute chart (3,316–3,319), also visible on the 15M timeframe. ✅ Last bullish push before the sharp downside breakout. ✅ Price retested this zone, wicked through it, and then sold off aggressively — reinforcing bearish order flow and the potential for deeper downside. I’m tracking this move as the final C wave of an ABC corrective pattern. ✅ The C wave started from the 3,319 high and is unfolding in a 5-wave substructure. ✅ 1-Minute breaker block around 3,316–3,319 — I’m watching for rejection here, which aligns with the 0.618 Fib retracement as an estimated end of wave 2. ✅ My current expectation: wave (3) and (5) of C could extend lower to the 3,256–3,202 zone. 🧩 Key Confluences: Bearish breaker block rejection 15M downtrend structure remains intact #XAUUSD #gold #forex #elliottwave #bearishbreakerblock #orderflow #priceaction
ICMARKETS:XAUUSDShort
by EWaveInsights
NAS100USD: Rejection Block & Breaker Converge for Sell SetupMarket Context: In today’s analysis of NAS100USD, we note that although the market has been trading within bullish institutional order flow, current price action is presenting multiple signs that a bearish reversal may be underway. Institutional behavior appears to have shifted, particularly after liquidity was swept and price began to respect resistance zones. Key Observations: Premium Buy Stop Sweep: Price action swept the swing high rather than breaking it cleanly, indicating a stop raid. This is a common smart money tactic used to engage with buy stop liquidity in premium pricing before reversing. Rejection Block Formation: A sharp rejection followed the liquidity sweep, leaving behind a Rejection Block—a powerful institutional resistance zone. This suggests the institutions placed sell orders against willing buyers and are defending this level. Market Structure Shift: We observe a break in internal structure to the downside, further confirming that the prior bullish order flow may now be transitioning into a bearish phase. Breaker Block Retest: Price has retraced into a Breaker Block, where institutions typically revisit prior zones of buying to mitigate exposure and initiate new sell positions. This zone is reinforced by alignment with the previous buy stop sweep, providing a high-value confluence area for short opportunities. Trading Plan: Entry Strategy: Await confirmation within the breaker on the lower timeframes. Once confirmed, these zones offer a strong institutional case for short positioning. Targets: Focus on discount liquidity pools as the primary objective. Selling from premium levels with the intention of targeting undervalued zones mirrors institutional execution models. Stay aligned with smart money behavior—observe, confirm, and act with precision. Happy Trading! The Architect
OANDA:NAS100USDShort
by The_Archi-tect
GBPUSD – 30m Buy Setup | FVG Entry + ChoCh + -27% Fib Target💷 GBPUSD Long Setup | May 8, 2025 | 30m Smart Money Model This 30-minute GBPUSD chart shows a perfect Smart Money shift backed by a clean Change of Character (ChoCh), a deep pullback into a Fair Value Gap (FVG), and confirmation via breaker block reentry. Let’s break it down: 🔍 KEY CONFLUENCES: 🟪 FVG between 1.32909 – 1.33112 🔄 ChoCh confirms structural shift from bearish to bullish 📉 Entry inside 50–79% Fib retracement (Discount Zone) 🧱 Breaker Block confluence with internal BOS 🎯 Target: -27% Fib extension = 1.33737 🛡️ Stop below 100% Fib ~1.32400 📈 Setup Specs: Timeframe: 30min Bias: Long Entry Zone: 1.33090 – 1.33110 TP: 1.33737 (Fib -27%) SL: ~1.32400 RR: Approx. 1:3.5+ 💡 Why It Matters: Smart Money often accumulates positions in hidden imbalances like this FVG zone. Retail traders get shaken out on the pullback — meanwhile institutions reload just below previous liquidity sweeps. The ChoCh confirms the shift, and boom — the liquidity vacuum fuels a launch to premium levels. 🎯 Chart Ninja Tip: “ChoCh isn’t just a signal… it’s a signature. It tells you Smart Money is changing sides.”
Long
by ChartNinjas88
NAS100USD: Building Support for a Bullish BreakoutGreetings Traders, In today’s analysis of NAS100USD, the market exhibits bullish momentum, and we aim to align with this narrative by focusing on bullish setups. Confluences supporting this direction include key institutional support zones that present opportunities for potential buy entries. Key Observations: 1. Retest of a Breaker Block: Price is currently retesting a breaker block, a critical area of institutional support. This zone represents where institutions mitigate prior sell orders and reinstate buy orders, offering a strategic entry point. 2. Confluence with FVG (Fair Value Gap): The breaker block aligns with an FVG, further strengthening the support zone and enhancing its reliability for buy setups. Trading Plan: Entry: Look for confirmation within the breaker block and FVG area to establish buy positions. Approach: Focus on scalping opportunities, given the current short-term market structure and setups. By leveraging these institutional support zones, we aim to capitalize on bullish momentum with precision and discipline. Kind Regards, The Architect
OANDA:NAS100USDLong
by The_Archi-tect
Week of Oct 24, 2022 - Price Action StudyDownload the Chart and Use the Groups of Drawings to Navigate the HTF Bias(Trend) and Context (PD Arrays), Narrative (Probable PD Array to be reached for next), Entries (1H/15m), and Risk (CBDR and levels in chart) With the period starting mid-week Oct 24, 2022 - Thursday Journal Define Weekly Range Profile with IPDA True Day Markers Done - IPDA True Day Lines Out of IPDA 60 Day Range, Price is in the bottom of a Discount range Guess for Weekly Range Profile - Classic Tue Low of Week Reason: Tues had a lower close, my hypothesis is that Price will make the high of the week aligned with the short term weekly high from Sep 12, 2022 Therefore if Price has not reached the target Premium PD Array by the London session, I aim to buy Orderblocks into the Sep 12 Weekly High before turning Bearish (FULL CONTEXT HYPOTHESIS) On 1H Chart, you can frame the target areas you want to trade from EOD Wednesday - End of NY PM Session ends the day on a higher high and the high of the week so far Thu Asian Session - Consolidation above the 1H OB from Oct 26th The 1H OB has been wicked twice in previous NY AM Session Price has created EQ Candle lows across Wed NY PM Session and Asian Session Thu London Session - Price moves aggressively into the 1H OB I know now that I am going to drop down to the 15m timeframe to look to execute an entry Huge Detail: WE ARE LOOKING FOR A LTF PD ARRAY TO FORM INSIDE THE 1H ORDERBLOCK TO VALIDATE ENTRY London Session continues to move down into the 1H OB Thu London Session EOD (5m/15m) Shortly after 5am Close, 5m and 15m chart shows MSS and creates 15m OB Looking for Entry on PD Array on 15m Timeframe (More Probable TF) 5m if refined entry NY Session AM (5m/15m) BIG NOTE: If News coming at 830a EST, move should happen after that - try to not Trade through 830a - that is GAMBLING, not Trading Depending on news being present, entry as the following Entry Price: Top of OB - 1.157 OB 50% Threshold - 1.156 No High Impact News/Events post 830a EST: 15m candle down close inside of 15m OB With High Impact News/Events post 830a EST: After 830a or whenever time the news is released (FOMC 2p EST) Entry in Case Study if condition is present: 845am Entry in Case Study if condition NOT present: 800am May just wait for 830a since it’s closer to NY AM Session Open? Important: What made this entry work? Price never closed under OB low after entering 15m OB Price showed 15m MSS (a 2 bar close under 15m OB is low proabability) William %R Divergence: Price making Lower Lows dropping into 15m OB and Higher Highs on William %R Exit Analysis: Original Price Target: Sept 12th Old Highs (4:1 RR) | Price: 1:174 Intermediate Target(s): Asian Session Bearish OB (1:1 RR) | Price: 1.162 (50% threshold) Result: Price failed to reach Original Price Target which makes sense as there did not seem to be high impact news present - with this we would aim for 1:1 or 2:1 moves using CBDR as reference for spread Move ended up reaching 1:1 RR aligned with 1H Bearish OB BREAKEVEN Thu IPDA Range Conclusion: Asian Session created Thu High NY Session AM Distribution leg created a lower high on 1H timeframe IPDA True Day closed in Discount area of the Wed 1H OB Midnight Price closed at EQ area of the Wed 1H OB With the period starting mid-week Oct 24, 2022 - Friday Journal Define Weekly Range Profile with IPDA True Day Markers Done - IPDA True Day Lines Guess for Weekly Range Profile - Classic Tue Low of Week Reason: Wed had a higher close and made the High of the Week around 1AM Thu before selling off and creating a lower high, my hypothesis is that Price will finish the week with a choppy day or lower close than Thu Therefore if Price has not reached the target Premium PD Array by the London session, I aim to buy Orderblocks into the Sep 12 Weekly High before turning Bearish (FULL CONTEXT HYPOTHESIS) On 1H Chart, you can frame the target areas you want to trade from EOD Thursday - End of NY PM Session ends with price Idenfied Wed FVG under the 1H OB that was mitigated Thu Marked 50% level of FVG Thu Asian Session Short Rally after closing below Thu NY Close then selling off later into day I know now that I am going to drop down to the 15m timeframe to look to execute an entry Fri London Session - Price moves aggressively down into the 1H FVG Huge Detail: WE ARE LOOKING FOR A LTF PD ARRAY TO FORM INSIDE THE 1H ORDERBLOCK TO VALIDATE ENTRY Price creates a 15m Breaker Block and 15m Bullish OB in London Fri London Session EOD (5m/15m) Price trades back into Breaker Block at 5am Entry Price: 1.152 NY Session AM (5m/15m) Price Trades to Thu NY Session close before print Bearish hammer candle and close below Thu NY Session close Intermediate Price Target As price moves into NY Session, adjust 15m OB to last unmitigated candle before 830a EST BIG NOTE: If News coming at 830a EST, move should happen after that - try to not Trade through 830a - that is GAMBLING, not Trading Depending on news being present, entry as the following Same with or without News: FVG nested Breaker Block retest 845am | Entry Price: 1.152 Important: What made this entry work? Breaker Block forming on 15m timeframe aligned with 15m OB inside of 1H FVG near EQ (Strong Probablity) Exit Analysis: Original Price Target: Fri Asian Session Highs (2:1 RR) | Price: 1:159 Intermediate Target(s): Thu NY Session Close (1:1 RR) | Price: 1.156 Result: 2 Trade Opportunities London Session 530a - 730a, 1:1 (Entry/Exit/RR) NY Session AM 845a - 1045a, 2:1 (Entry/Exit/RR) If held through 4p EST close, 2.75:1 RR (2x CBDR from entry) Fri IPDA Range Conclusion: Friday closes Higher than NY Session Low We do not count Sun price action independently Confirmed Weekly Profile - Classic Tue Low of Week Price seems to be close to discount than Premium range Traded inside of Wed Oct 26th candle on Thu/Fri
Long
by EaszzzyE
ARB/USDT 15m / D BB & FVG / ELLIOT / LIQUIDATIONS / FIBOAccording to higher timeframes, the market sentiment is bullish. We are moving within an ascending channel with the potential to rise to 0.7416. To increase the probability of this outcome, the price needs to establish itself above the ascending channel. Locally, within the range of the daily breaker block (D BB) and the daily imbalance (D FVG), three potential entry points are visible: 1. Liquidity grab (Sellside liquidity) 2. 0.5 Fibo 3. 0.618 Fibo / bottom of the ascending channel 4. The target is the local high, which is at the midline of the channel. Locally, based on the EFIATR oscillator, volume, and liquidation levels, there is a likelihood of growth. According to Elliott Wave theory, a 5-wave pattern and an ABC correction in the 4th wave are visible, which further increases the probability of upward movement.
Long
by WoWAcEDuDe
3
ICT Breaker & Mitigation Blocks EXPLAINEDToday, we’re diving into two powerful concepts from ICT’s toolkit that can give you an edge in your trading: Breaker Blocks and Mitigation Blocks. There are one of my favourite PD Arrays to trade, especially the Breaker Block. I’m going to explain how I interpret them and how I incorporate them into my trading. Stay tuned all the way to the end because I’m going to drop some gold nuggets along the way" Ok, so first of all let’s go through what both these PD Arrays look like and what differentiates them, because they are relatively similar and how they are used is practically the same. On the left we have a Breaker Block and on the right a Mitigation Block. They both are reversal profiles on the timeframe you are seeing them on, and they both break market structure as you can see here. The actual zone to take trade from, or even an entry from, in the instance of this bearish example is the nearest down candle or series of down candles after price makes a lower low. When price pulls back to this area, one could plan or take a trade. The defining difference is that a Breaker raids liquidity on its respective timeframes by making a higher high or lower low before reversing, whilst a Mitigation Block does not do that. For this reason, a Breaker is always a higher probability PD Array to trade off from. As you should know by now if you are already learning about PD Arrays such as these is that the market moves from one area to liquidity to another. If you don’t even know what liquidity is, stop this video and educate yourself about that first or you will just be doing yourself a disservice. Alright, so let’s go see some real examples on the chart. Later on I’ll give you a simple mechanical way to trade them, as well as a the discretionary approach which I use. And of course, some tips on how to increase the probability of your setups.
Education
by Road_2_Funded
2
ICT Unicorn Model - The powerful ModelThe Unicorn entry model in the ICT method combines the concepts of the Breaker Block and the Fair Value Gap, providing a unique approach to identifying trade opportunities. This combination highlights a future area of support/resistance. A Bullish Unicorn Pattern consists out of: A Lower Low (LL), followed by a Higher High (HH) A Fair Value Gap (FVG), overlapping the established Breaker Block A successful re-test of the FVG which confirms the pattern. A Bearish Unicorn Pattern consists of: A Higher High (HH), followed by a Lower Low (LL) A Fair Value Gap (FVG), overlapping the established Breaker Block A successful re-test of the FVG which confirms the pattern In this trading idea, I would combine the movement of DXY and GU/EU to explain the correlation and divergence (ICT SMT). Futhermore, I want to share how powerful the ICT Unicorn Entry Model is.
TVC:DXYEducation
by MrTuanDoan
My 5 potential trades for this weekTrend is long term bullish but currently bearish. We are close to hitting bearish trend line. Falling wedge with recent double bottom. Multiple FVG’s to be filled. All indicative of an impending reversal to initial direction. 1) long @ 1.07884 if $ & downtrend $ is swept 2) long @ 1.07225 if 4h $ & bullish $ is swept 3) long @ 1.08553 if OB & trend line $ is broken using OB as breaker block to be rejected. 4) short @ 1.08553 if OB is rejected 5) short @ 1.09328 if FVG & 4h $ is rejected being mindful of rejection off possible breaker block and bearish trend line for indication of reversal
by SLouise96
Light Crde Oil ( CL1!, US Oil ).... BULLISHAs I mentioned in the Weekly Outlook video, I expected the fair value gap + the bullish breaker block to hold price, and provide support for a potential rally. It chopped since Tuesday, but we've seen the bulls come in and slowly start to move price higher. I expect that price will continue that move today. I am looking for price to pullback a bit, after taking the yesterday's high. I should pullback halfway into Thur's candle, and push higher towards the highlighted draw on LQ (red line). If it doesn't happen today, then I look towards the beginning of next week for it to play out. May profits be upon you.
NYMEX:CL1!Long
by RT_Money
🔗 LINK : Sweeping Low to PUMP HARDER ! Chainlink (LINK) has been navigating a consolidation phase within a well-defined range since November 11. This prolonged period of price equilibrium suggests a process of accumulation and distribution. Notably, the market exhibited intriguing behavior during this time, executing two distinct liquidity sweeps above the upper boundary of the range. 📊 Range-Bound Dynamics: The apparent range-bound behavior of LINK denotes a phase of indecision and equilibrium in the market. Such periods are often indicative of participants accumulating positions and preparing for a potential directional move. 🔄 Liquidity Sweeps Analysis: The tactical execution of two liquidity sweeps above the upper range boundary provides essential insights into the market's internal dynamics. These sweeps involve a deliberate move to trigger stop-loss orders, inducing short-term reactions. Understanding and interpreting these reactions become crucial in anticipating potential future price movements. 📈 Technical Insights: 🔄 Lower Liquidity Extraction: Presently, the market is engaged in extracting liquidity from the lower end of the range. This involves a strategic move to trigger stop-loss orders, causing a cascade of selling pressure. Subsequently, there is a retest of critical support, potentially serving as a launchpad for a bullish continuation. 🚀 Anticipated Breakout Strategy: 🚀 Targeting $20 Resistance: The strategic extraction of liquidity from the lower range sets the stage for a potential breakout. The next significant move is anticipated to be an upward surge, with the $20 resistance level being a key target. 📊 Tactical Considerations: 🛑 Understanding Range Dynamics: Traders are advised to be vigilant regarding the nuances of range-bound behavior, utilizing this information for informed decision-making. 📈 Confirmation of Breakout: A confirmation of the breakout will be established through sustained upward momentum, especially following a successful retest of crucial support levels. 📝 Conclusive Insights: In the intricate landscape of Chainlink's recent market movements, characterized by meticulous range trading and calculated liquidity sweeps, the outlook suggests a potential breakout. Traders are encouraged to closely monitor unfolding developments, with a breakout beyond the $20 level signaling a transformative shift into a new bullish phase. 🚀 Unlock my 3 crypto trading indicators for FREE! 🚀
by AlexWhale
ETH/BTC Catch up time?ETH/BTC chart broken down into some simple key areas. We've recently had a double bottom as ETH has lost strength against Bitcoin, however for me it is clear that if the breaker block is flipped after such a strong reaction from the double bottom ETH is on its way to reclaiming strength against BTC. The next level of major resistance would be 0.0625 area. After BTC's huge move recently and other L1's like SOLANA and INJECTIVE etc ETH has had a lagging response in comparison. With profits from BTC filtering down the next obvious place would be Ethereum before some sort of mini alt-season if that's possible at this stage. Coupled with the news that Blackrock have just registered an Ethereum trust in Delaware ETH looks very strong currently.
by ProR35
1