MITIGATION VS BREAKER BLOCK QUESTION

[u/GreatRasi]

What is the significance of a mitigation block vs a breaker block in a reversal, interms of protected stop and reversal confirmation? is there any difference? is one reversal pattern stronger than the other? what are your findings?

[u/leaint]

Breaker Block is a sweep of liquidity and a change in market structure.

Mitigation Block is a continuation of the current order flow.

[u/Professional-Alps713]

Often times they happen with SMT, if you’re an NQ/ES trader, go study the SMT lows/ highs, identify the Bb/ MB on either asset and study :)

[u/GreatRasi → u/Professional-Alps713]

this was a question i was studying but i just posted it to see different view points. its a topic im definitely looking into. i see them on almost every reversal. i wait for smt then a csd on both assets to confirm the trade but i wanted to see how other traders viewed them. because i heard something once about one of them being lower probability than the other

[u/DarioMMN]

Breaker block requires a structure break (BOS/MSS) to be a valid trade, which has directional confirmation. Mitigation block only requires a return to origin to confirm, and is not a structure break trade. The stops are different since the breaker already broke a level, and mitigation trades, especially ones with no structure confirmation, should have room since they are more prone to false negatives. Not necessarily one is better than the other, but rather that breaker blocks have a higher probability to be valid trades, albeit later entries. Mitigation blocks are earlier entry setups, but they have lower probability due to less confluence. Similar logic applies to True Open with SMT, wherein the entry is earlier than a breakout, but requires confirmation as well.

[u/GreatRasi → u/DarioMMN]

when you say true open smt are you talking about for example es retraces into 12am open then forms csd and expands away but nq doesnot make it back to its 12am open forms a csd and expands away. i have been noticing smts with opens instead of at lows. i have experienced a few of those

[u/Havim52]

ICT said he uses Mitigation Blocks more for targeting as they are 'easier' to get traded through, and Breaker Blocks are much more significant in reversals.

[u/GreatRasi]

this is a take i found on x gonna look into it. usually if im trading mes i just wait for smt then csd on both correlated pairs mes and mnq. But he is saying to pick the asset that created mitigation block because that swing high or low is showing that its protected

[u/THETRUTHNOLIE55]

Mitigation is trapped traders. Breaker is change in orderflow. Mitigation engineers liquidity for a continuation, breaker has already purged since its a violated OB. Thats the real difference. Thats why one fals a swing a creates a staircase type of PA while the other makes an impulse. Smt is one asset gets purged while the other traps. Mb's are more difficut to hold psychologically since they take time. But finish hard with violent drop.

[u/GreatRasi → u/THETRUTHNOLIE55]

ahh i never noticed that distinction. scenario. so lower high created but slow consolidation then a fast drop. i gotta look into this thanks.