How to Trade "Mitigation Blocks" – Secret Used by Big Boys!

Hello Traders!
Today we’re diving into an advanced Smart Money Concept – the Mitigation Block. If you’ve ever wondered how institutional traders quietly manage their risk and re-enter trades with precision, this is it. Learning to identify and trade Mitigation Blocks can completely change how you see charts — and give you an edge most retail traders miss!

What is a Mitigation Block?
A Mitigation Block is formed when smart money (institutions, banks) enter a position, price reacts strongly, but later returns to the same zone to “mitigate” their risk or add more positions. This block acts as a powerful zone of support or resistance, depending on trend direction.

How to Identify a Mitigation Block

• Look for Imbalance + Strong Reaction: A large impulsive candle followed by a return to the origin zone.
  
  
• Price Fills the Fair Value Gap: Smart money wants to re-enter at the best price — this creates the mitigation block.
  
  
• Previous Break of Structure: The block should follow a BOS (Break of Structure) that confirms a new trend.
  

How to Trade the Mitigation Block

• Mark the Origin Candle Zone: Identify the candle or small range where the impulse began. This is your block.
  
  
• Wait for Price to Return: When price comes back to that zone, look for entry confirmation (candlestick rejection, SMC confirmation, etc.).
  
  
• Use Proper SL and RR: Place stop loss below/above the mitigation zone and target next liquidity level or BOS zone.
  

Rahul’s Tip
Most traders chase breakouts. Smart money plans for the pullback to mitigation zones. Be patient, wait for confirmation, and strike where big players do — not where the crowd is jumping in.

Conclusion
Mitigation Blocks are not just support/resistance — they are institutional footprints. Learn to spot them, understand the intent behind them, and you’ll start entering where the big boys load up.

Have you ever traded mitigation blocks before? Share your experience in the comments!