Core Month 04 03 01 Mitigation Blocks - newsqlguru/ict-index GitHub Wiki

ICT Mentorship Core Content - Month 04 - Mitigation Blocks

Key Terms

  • Mitigation Block (+/-MB)
  • Bearish Institutional Order Flow (IOF), reference points, Bearish Orderblock, Old high, Old low above current price, Bearish Breaker.
  • Bullish Institutional Order Flow (IOF), reference points, Bullish Orderblock, Old low, Old high below current price, Bullish Breaker.
  • Market Structure Shift (MSS)

Content

  • Bearish Conditions

    • Price hits an anticipated bearish IOF reference point.

    • Note bullish IOF reference point for targets.

    • When price hits the bearish IOF RP, look for a failed swing.

    • This will be an M pattern. Looks like an M.

    • The failed swing will trade down past the last low, middle of the M pattern.

    • This is a MSS, and confirmation that SM wants to send price lower.

    • We look at the range from short term low (middle of M) to the high of the failed swing, this is the Mitigation Block.

    • Once price creates the MSS lower, we focus on the short term low of the M.

    • When price returns to the short term low of M.

    • We now have 3 points of reference in price action.

      • A, Short term low of the middle of M pattern.
      • B, High of failed swing, second high of M pattern.
      • C, Low that is lower than the MSS, the swing low after MSS formed when price reverts to short term low of M.

    • The long positions taken when price moved from A to B have an opportunity to liquidate or "Mitigate" their net loss that occurred when price moved from B to C. (Buyers Remorse)

    • This can action of buyers, (mitigating) selling for less loss, can result in new lower price swings to C to retest C or for significantly lower lows into the "Support" level below C well under market price.

    • There is a short setup when the price retraces to point A.

    • This pattern repeats during the price swing as price moves towards liquidity.

    • If the first mitigation block is missed, the second, or third can be caught for trade entry.

    • Stops can be placed at the high of the last down down candle of the short term low (middle of M).

    • Price shouldn't retrace past the short term low candle, if the PA is valid.

    • Target point C and lower, when price hits lower liquidity we exit our trade and wait for the next price move.

    • We want to Sell Premium Price highs during bearish conditions.

    • Fair Value Gaps and Liquidity Voids 50% Equilibrium can and should be a target for taking profits.

  • Bullish Conditions

    • Reverse the above logic.

Notes

  • Find 10 occurrences in past price action and log them in your trade journal.
  • Extra credit if found on multiple time frames.