What is a Mitigation Block?
A Mitigation Block (MB) is a zone where market makers settle orders before a price direction changes. This area often acts as a support or resistance level.
Example of a Mitigation Block
The price initially moved upward in the XAG/USD 15-minute chart, forming higher highs (HH) and higher lows (HL).
Upon reaching a bearish reference area, it could no longer create a new high and began to decline.
Then, the price broke the previous low, turning the market structure bearish. This formes the Mitigation Block, and subsequently, the price returnes to this block, providing a suitable selling opportunity.