How To Trade Mitigation Block, Breakers and QML
ghosttraders April 12, 2021 Blog

How a breaker and mitigation block get formed

A mitigation block is formed when the market failed to make a higher high. In simple terms, a mitigation block is the result of a failure swing in the foreign market. While a breaker is a result of a successful swing in the market. meaning price will form higher highs. collecting by side liquidity on previous highs. continue reading and you will know how to trade mitigation block and breakers.

comparison between a breaker and mitigation block

a breaker forms higher highs whilst mitigation block forms higher lows. When these unfold, we are looking for trading opportunities in the market. A breaker will collect buy-side liquidity on the previous high forming a new higher high whilst a breaker will fail to collect buy-side liquidity forming higher lows.

This means a mitigation block is a result of a failure swing. whilst a breaker is a result of a successful swing in the market.

Different types of mitigation blocks and breaker blocks

  1. BEARISH MITIGATION BLOCK AND BULLISH MITIGATION BLOCK
  2. BEARISH BREAKER BLOCK AND BULLISH BREAKER BLOCK

How to trade bearish mitigation block and bullish mitigation block.

A bearish mitigation block occurs when there`s a failure swing in the market resulting in a lower high being formed after price has failed to collect buy-side liquidity on previous highs due to an order block or rejection block. so this means a bearish mitigation block is a result of a failure swing due to an order block or rejection block. pushing price down to collect sell-side liquidity on the nearest previous low thus forming a lower low

after price has formed a lower low it will pull back up to fill the liquidity void that has been created as price was pushed down by the order block, in an attempt of price pulling back to fill in liquidity voids, it will use the previously violated low as a point of reference to fill 50% of the liquidity void than continue to bearish/sell. Having these in mind we can then use the previously violated low as our entry point and also our Fibonacci we can see the previously violated low lining up with our equilibrium which will give confluence.

A bullish mitigation block occurs when there`s a failed collection of sell-side liquidity on previous lows in the market. resulting in a high low being formed after price has failed to collect sell-side liquidity on previous highs due to an order block or rejection block. so this means a bullish mitigation block is a result of failed collection of sell-side liquidity on previous lows due to an order block or rejection block. Pushing price up to collect buy-side liquidity on the nearest previous high thus forming a higher high.

After price has formed a higher high it will pull back down to fill the liquidity void that has been created as price was pushed up by the order block or rejection block. in an attempt of price pulling back to fill in liquidity voids, it will use the previously violated high as a point of reference to fill 50% of the liquidity void than continue to be bullish. Having these in mind we can then use the previously violated high as our entry point and also using our Fibonacci we can see the previously violated low lining up with our equilibrium which will give confluence.

How to trade bearish breaker block and bullish breaker block.

A bearish breaker occurs when price create a lower low, collecting liquidity pools by taking out previous low than pull up and collect buy side liquidity on the nearest high than price will come back later to retest the previously violated high and continue to go down. This happens to close all the liquidity voids created our main goal is to wait for a pull back to the previously violated high and once we see a good rejection we make our buy entries.

A bullish breaker occurs when price creates a higher high, collecting all the resting liquidity pools on previous highs forming a higher high. then price will drop and collect sell-side liquidity on previous lows and form a lower low. after that price will retrace up to the previously violated low and retest then continue to drop.that’s where we will take advantage of price and sell short on the previously violated low.

Here are some videos to help you understand How To Trade Mitigation Block, Breakers and QML


These videos have helped you understand in-depth what has been addressed by this article. this article didn’t only talk about how To Trade Mitigation Block, Breakers, and QML but also addressed what is a mitigation block.

TRADING CONCEPT THAT CAN BE USED WITH MITIGATION BLOCK AND BREAKER BLOCK

Other Trading Concept that we can use for confluence with breaker block or mitigation block is the understanding of order flow in forex trading, this gives enlighten on which high or low is exposed to be taken out .this will guide us on the directional bias of the market. The understand of order flow coupled with fair value gaps and liquidity voids is gold in high probability trading concept. This helps you understand not only how to trade mitigation blocks. but also giving an understanding of the price delivery algorithm. which will help understand what the smart money traders are doing in the market.

Now you know How To Trade Mitigation Block, Breakers, and QML!!! all you need is to go back and backtest everything that has been discussed. Remember there are no shortcuts just work hard. check our YouTube Channel and Instagram.for joining our mentorship check: HERE

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