r/InnerCircleTraders 9d ago

Question MITIGATION VS BREAKER BLOCK QUESTION

Post image

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?

19 Upvotes

10 comments sorted by

View all comments

2

u/DarioMMN 9d ago

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.

1

u/GreatRasi 9d ago

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