Master the "Institutional Rebalance." Learn how price returns to previous losing levels to allow institutions to exit their trapped positions.
A Mitigation Zone is a price level where an institution previously built a position that resulted in a "failed" trend or a price extreme that didn't hold. When price returns to this zone, institutions use the liquidity present to mitigate—or close out—their losing trades at a better price point (often near break-even). This closing of losing positions creates a reaction, often serving as a significant level of support or resistance.
The distinction between a Breaker Block and a Mitigation Zone is structural:
They act as secondary points of interest. If you missed the primary entry at an Order Block or Breaker Block, the Mitigation Zone often provides a "second chance" entry as price rebalances.
Look for price levels that were previously defended by institutions but failed to push the market to a new structural extreme. That zone of failed defense is your mitigation zone.