What Is a Mitigation Block (MB)?

A Mitigation Block (MB) is a special type of Order Block within ICT’s Smart Money Concepts. It forms when the market makers or large institutions need to mitigate (offset) previously placed orders before continuing the trend in a new direction.

In simple terms, a Mitigation Block is a zone created after the market structure shifts, and it often becomes a support or resistance level for future price movement.

How a Mitigation Block Forms

A Mitigation Block appears when the following happens:

1. The market attempts to continue its existing trend
   (e.g., moving upward by forming Higher Highs and Higher Lows).

2. Price reaches an opposing reference level
   (such as a strong supply zone during an uptrend).

3. Price fails to make a new high or low, showing the trend is weakening.

4. A market structure break (MSB) occurs
   —for example, the price breaks the previous Higher Low (HL) in an uptrend.

5. The candle or zone responsible for that failed continuation becomes the Mitigation Block.

After the structure break, price often retraces into this block, allowing smart money to:

• Fill unfilled orders

• Mitigate earlier buy/sell positions

• Continue pushing price in the new direction

This retracement into the Mitigation Block frequently creates a high-probability entry point.

Mitigation Block Example (XAG/USD – 15-Min Chart)

Let’s break down your example in a clean, reader-friendly way:

1. Trend Continuation Phase

The market was in an uptrend, producing:

• Higher Highs (HH)

• Higher Lows (HL)

This confirms bullish momentum.

2. Price Meets a Bearish Reference Area

Once the price reached a significant bearish supply zone, it:

• Failed to create a new Higher High

• Showed signs of bullish exhaustion

This signals that institutional selling pressure may be entering the market.

3. Market Structure Shifts Bearish

Price then broke the previous Higher Low, switching the structure from bullish to bearish.
This break is crucial—it confirms that buyers have lost control.

4. The Mitigation Block Forms

The last bullish candle (or small zone) before the structure break becomes the Mitigation Block.

This is the area where:

• Smart Money had previous buy orders

• Institutions mitigate (cover) those earlier positions

• New sell orders are placed to push price lower

5. Price Retraces Into the MB

After the market structure turns bearish, price typically retraces back into the Mitigation Block, creating a high-probability sell opportunity.

This is where traders look for:

• A clean retest

• Confirmations like rejections, imbalance fills, or SMC entry triggers

Why Mitigation Blocks Matter

Mitigation Blocks help traders understand:

• Where institutional orders are located

• Where price is likely to react

• High-probability entry zones after a structure shift

• Points where the market corrects inefficiencies

They are powerful tools for structure-based trading, especially within ICT’s SMC framework.