📚 From Beginner to Professional
📖 Lesson 13: What Is a Mitigation Block?
#DigitalCurrency $XAU $XAUT
🎯 Why does price return to a certain area after a strong move?
In the ICT methodology, a Mitigation Block refers to a price area associated with a previous move that failed to continue. Traders watch this area when price returns to it.
📊 An educational example using gold:
Suppose gold is trading at 4100.
1️⃣ It rises to 4130 and forms a high.
2️⃣ It falls to 4090 without making a new high.
3️⃣ It breaks an important low at 4090.
4️⃣ Later, it returns to test the 4120–4130 area.
5️⃣ If bearish rejection signals appear, the area may present a potential selling opportunity.
🔴 This area may be classified as a Bearish Mitigation Block if it meets the price-structure criteria.
🟢 The opposite applies in a bullish trend:
We watch an area where a previous downward move failed, followed by a bullish break of structure, and wait for a retest.
🔍 How can we use it?
✅ Identify the move that failed.
✅ Wait for a market structure break.
✅ Mark the appropriate candle area.
✅ Watch for price to return to it.
✅ Wait for entry confirmation.
⚠️ Important:
Not every bounce or retest is a Mitigation Block, and the area does not guarantee a price reversal.
💡 The golden rule:
Identify the context first, then the area, then confirmation. Don’t enter based on the area alone.
📌 Question for followers:
Should we sell as soon as gold reaches a Mitigation Block, or wait for confirmation?
━━━━━━━
🔜 Lesson 14: Displacement – How Do We Spot a Truly Strong Move?
📖 Lesson 13: What Is a Mitigation Block?
#DigitalCurrency $XAU $XAUT
🎯 Why does price return to a certain area after a strong move?
In the ICT methodology, a Mitigation Block refers to a price area associated with a previous move that failed to continue. Traders watch this area when price returns to it.
📊 An educational example using gold:
Suppose gold is trading at 4100.
1️⃣ It rises to 4130 and forms a high.
2️⃣ It falls to 4090 without making a new high.
3️⃣ It breaks an important low at 4090.
4️⃣ Later, it returns to test the 4120–4130 area.
5️⃣ If bearish rejection signals appear, the area may present a potential selling opportunity.
🔴 This area may be classified as a Bearish Mitigation Block if it meets the price-structure criteria.
🟢 The opposite applies in a bullish trend:
We watch an area where a previous downward move failed, followed by a bullish break of structure, and wait for a retest.
🔍 How can we use it?
✅ Identify the move that failed.
✅ Wait for a market structure break.
✅ Mark the appropriate candle area.
✅ Watch for price to return to it.
✅ Wait for entry confirmation.
⚠️ Important:
Not every bounce or retest is a Mitigation Block, and the area does not guarantee a price reversal.
💡 The golden rule:
Identify the context first, then the area, then confirmation. Don’t enter based on the area alone.
📌 Question for followers:
Should we sell as soon as gold reaches a Mitigation Block, or wait for confirmation?
━━━━━━━
🔜 Lesson 14: Displacement – How Do We Spot a Truly Strong Move?