Mitigation
Price returns to a zone to fill the part of the position left there. After that the zone no longer works.
Mitigation — what it is?
Mitigation is a zone being worked off. Price returned into the order block or the imbalance, the remaining orders got filled, and the move continued.
After that the zone counts as spent. The volume that held it is no longer sitting there, and there is nothing left to react.
This explains a common beginner's disappointment: the zone worked perfectly once, and the second time price went straight through it. That is exactly how it should be.
Mitigation — how it is built?
Mark the zones that have been worked off and take them off the chart. There are only ever a few live zones at a time — the old ones just clutter the markup and provoke entries where the grounds are already gone.
Mitigation — common mistakes
Going back to a zone that has already given its reaction.
Calling any touch of the boundary mitigation: what matters is entry into the zone and a reaction out of it.
Keeping a month's worth of zones on the chart.
Confusing mitigation with a breaker.
Related to
Glossary
- Order block
- the last candle in the opposite direction before the impulse that broke structure.
- imbalance
- a stretch of chart price went through too quickly, without even trading.
- volume
- the number of trades or contracts in a period.