💫 Summary
The video explains the concept of mitigation blocks in trading, which are moves in the market where the strength has been reduced. It discusses the types of mitigation blocks and how to identify and trade them. The key strategy is to wait for a change of trend and confirmation before entering a trade.
✨ Highlights📊 Transcript
Mitigation blocks in trading are used to reduce the impact of certain moves in the market.
Mitigation means to reduce the impact or strength of something.
Mitigation blocks are found at the last standing points that attempted to form higher highs or lower lows but failed.
In an uptrend, mitigation blocks are higher lows that fail to create new higher highs, and in a downtrend, they are lower highs that fail to create new lower lows.
In a downtrend, a new lower low is expected until the market creates either a higher low or takes out the previous low, which is called mitigation and weakens the impact downwards.
Mitigation is one of the three types of W's and M's.
There are three types of W's and M's: double top/bottom, M/W with a lower/higher high, and M/W with a higher/lower low.
The rules for W's and M's cannot be tested the same as an M.
The mitigation block is found at the last red candle that gave a push up and can be used to trade bearish moves.
The block should be at least a significant break below the neckline.
A mitigation block can be identified by a lower high or an almost double top, but the high should not be taken out.
A bullish mitigation is the opposite of a bearish one and means that a move downwards has been mitigated.
The video discusses the importance of risk management in trading and advises waiting for a change in trend before entering a trade.
Your wins should always be bigger than your losses to cover small losses.
After identifying the direction and structure, wait for the price to return to the breaker block.
Traders can consider reversals or continuations based on their trading strategy.
Avoid sniper entries and wait for a change in trend for confirmation before entering a trade.
The video discusses identifying mitigation blocks in forex trading to predict market movements.
Mitigation blocks are used to identify failed push-ups and lower highs.
A break of structure indicates a return to the mitigation block.
The market may retest the neckline after an M pattern.
The failed push-up candle is of particular interest in identifying mitigation blocks.
This section explains how to identify and use mitigation blocks in forex trading.
The video shows an example of a failed push downwards in the market.
The green candle in the identified area represents where the market is expected to come down to.
Traders need to mark the order block in the area that gave the failed push downwards.
The usage of mitigation blocks depends on the trader's preference and trading strategy.
00:00mitigation is an english word that means
00:04reduce an impact or reduce risk or to
00:07lessen something
00:10we also have what we call mitigation in
00:12trading we have what we call mitigation
00:15blocks so from the word that we have had
00:19uh by its meaning coming from the
00:21english language it means to reduce to
00:23reduce the impact to reduce the strength
00:26of something or to lessen the strength
00:27of something
00:28so mitigation blocks means that there is
00:32a move in the market that the strength
00:35has been
00:36reduced right
00:38hello everyone uh this is paul from the
00:40apn academy
00:42and uh we do release videos every week
00:44in case you're new to the channel it's
00:46your first time coming across
00:48uh this uh any of our videos
00:50uh if you've not subscribed please do
00:52subscribe so that you do not miss out
00:54videos that can help your trading
00:58so uh in today's video i'm gonna be
01:00talking about
01:01mitigation uh blocks
01:03and what are we gonna be talking about
01:05in this video here we're gonna be
01:07talking about what mitigation blocks are
01:10the types of mitigation blocks and how
01:12to use the mitigation blocks as usual
01:14we're going to be starting with theory
01:16then i will show you exactly what we
01:18have been speaking about theoretically
01:20on the charts without wasting time let's
01:23just kick off so what are mitigation
01:25blocks like i started by telling you the
01:27meaning of mitigation it may reduce the
01:30of something now in this case it means
01:33to reduce the impact of a certain move
01:36in a direction
01:38right so how do we define it we define
01:40it by
01:41it's this medication blocks all the
01:43medication block is found at the last
01:45standing points that attempted to form
01:47higher highs
01:48or lower lows higher highs in an uptrend
01:51and lower lows in a downtrend but they
01:53do not succeed
01:55right so in simple terms
01:58we can just even say that these are just
01:59higher laws that fail to create higher
02:02highs oh we can say these are
02:05these are
02:06these are lower highs that fail to
02:08create new lower laws in simple terms
02:11right so let me just illustrate for you
02:13what i mean for example if the market is
02:15trending upwards we are creating
02:18higher highs and higher lows
02:20right now when we create this uh
02:23uh higher low we expect a new higher
02:26high now the market comes and creates
02:27this new higher low here which is
02:29retesting this previous high
02:31what do we expect we expect the market
02:32to give us a higher high but the moment
02:35the market fails to take out this high
02:36by either creating double top
02:38or by creating what we call
02:41a lower high and then the market break
02:45this is what we call we're calling
02:46mitigation the market has failed
02:49the strength has lessened this it has
02:51weakened the move has weakened
02:54are you getting it that's why the word
02:55comes from mitigation
02:57right so you need first understand the
02:59meaning of the word so that everything
03:00becomes easier that's why we are saying
03:03it is found at the last turning point
03:05that attempted new higher highs or
03:08lower laws but failed or simply you can
03:10say these are
03:12these are usually also higher laws that
03:14fail to create new higher highs or there
03:17can be new lower highs that failed
03:20to create new neurals
03:23that makes sense it must be very simple
03:25right want to simplify everything for
03:27you and also taking this example into
03:28context you can just get it
03:30alternatively even if it is a downtrend
03:32when the market is making lower lows
03:34lower highs lower lows lower highs when
03:36the market is in doubt we expect to be
03:38making lower lows and lower highs now
03:40the moment the market creates
03:42a lower low under tests here and then we
03:44expect to create a new lower law the
03:46moment it fails to do that and creates
03:48either and first take out this law
03:50creates the adult bottoms
03:53it does create
03:55what we call a higher low
03:57and then break structure where we call
04:01mitigation like the move was mitigated
04:04the move down was mitigated it was
04:05reduced its impact downwards has been
04:08weakened it has been lessened
04:11i hope i make sense
04:13right so that's the illustration that i
04:15have tried to do here now once again i
04:17know most people are going to disagree
04:19with me but
04:21these other blocks when you're trading
04:23using other blocks
04:25there's a video we posted on our channel
04:27you can just look for it w's and m's i
04:29can't even attach the link in the
04:32you'll find a link in the description
04:34simply these things are just w's we
04:36spoke about three types of w's now most
04:39people are focusing on mitigation as
04:42this is one of the w's we spoke about we
04:44have three types of w's
04:46and m's not just w's for example in an
04:48uptrend mitigation
04:50that creates uh the british mitigation
04:54it's the second type of a w that creates
04:56a height this is just a w
04:58and we expect of course the rules of the
05:00w expected they can't be tested the same
05:02as an m
05:03we have three types we have the double
05:06of an m the same applies to w we have
05:08the double bottom we have this m with a
05:12lower high the same applies we have a w
05:14with a higher low
05:16we have uh
05:18uh an m with a higher height and breaks
05:20this we have a w with a low alloy that
05:22breaks this so this is what we made in
05:25our previous video i'm also going to
05:26touch the video
05:28uh which people call if the market makes
05:30a lower low like this or a higher high
05:33before creating an m
05:34this one is called
05:37this one this type of m1w creates what
05:39we call a breaker block now the second
05:41type of an aim is what you people are
05:43calling a mitigation
05:45simply it's it's a structure and these
05:48are m's and doubles being formed in the
05:49market that's how the market moves right
05:52but of course uh people want to come up
05:54with nice words that sound nice so
05:56that's okay
05:58it's not bad to come up with your own
06:00thing so
06:01now this is how mitigation looks like so
06:03let's speak about the types i've already
06:05talked about the types the bearish one
06:08we say this is found at the last turning
06:10point that attempts to create a higher
06:13high but fails right
06:14uh what do i mean by that is if the
06:16market is moving let's say up
06:19higher high higher low higher high
06:22higher low then we create this higher
06:24high and we come back to create a higher
06:26low then we fail to take out this high
06:28rather we stop here and then we drop
06:31down or we create
06:33almost an echo high then we drop down we
06:35break this
06:36now there is a block that is created
06:39here sometimes you can just call it a
06:40neckline area or if you want to use the
06:43the last red candle here that gave us
06:44this push
06:46this is going to be it becomes that
06:47block the mitigation block
06:49right so if we break below here
06:52and another condition is that this break
06:54should be at least significant right
06:56so most people like using this type of m
06:58with a lower high but also you can use
07:00an aim that has almost a double top
07:04the condition is
07:05this high has not been taken out right
07:08so the block is found here you can
07:10either use the block or you can use the
07:11neckline in case you want but in this
07:13case we're speaking about mitigation
07:15blocks so you have to use the the the
07:17last uh red candle that
07:19gave you this push up so to make it the
07:23all right together so how do you trade
07:25it we're going to look at that just
07:27so this is how i define
07:29a bearish one then the bullish one let
07:32me just clear this uh the bullish one is
07:36excuse me the bullish one is just uh
07:39the opposite of this one it's found at
07:40the last turning point that attempts a
07:42new low low but fails or you can easily
07:45you can just simply say that it's a
07:47lower high that failed to create a new
07:49lower low for example what do you mean
07:50by this
07:51when the market is creating lower lower
07:54high low
07:55right after the testing we expect the
07:56market to create a lower low but the
07:58moment it fails to do that
08:00and incidentally re-test it creates
08:02almost double bottoms
08:04almost our bottoms and then break
08:07or it does create for us
08:11after this we just created us a higher
08:13low and in a break structure
08:16it means that this move downwards the
08:18lower lower high has been mitigated its
08:21move has been lessened it has been
08:22reduced it has been eliminated
08:25because that's the meaning of mitigation
08:26that we started with
08:28we're together so bullish and bearish
08:30mitigations are just the opposite of the
08:33and it's almost the same as the
08:35the breaker but the difference i've
08:37showed you that
08:39the breaker we're looking at the market
08:41taking out all making fake outs by
08:43creating this high
08:45right and then breaking down
08:47but in a breakaway they're making
08:49effect out higher high we're making out
08:52we're making
08:53effect out lower like this it's just our
08:56previously that we made in case you have
08:58not watched it you can just go ahead and
09:00watch it
09:01so that's the difference while in
09:03mitigation we're creating
09:06slightly we are fairly take out the
09:08height or we are fairly tech out there
09:10the low that's the difference in case
09:11you know the difference right so
09:15these are the two types of mitigation
09:17blocks that we do
09:18have and then
09:20let's look at how do we introduce
09:22mitigation blocks it's just pretty the
09:23same as uh the breaker blocks
09:26so the first thing always intriguing you
09:28know i tell people is you have to
09:29identify direction
09:31remember you're supposed to have three
09:32types of time frames
09:34one is for analysis of course we get
09:37direction from the analysis after
09:39analysis uh in analysis we we get
09:42direction and we get a structure going
09:43to trade after identifying that then you
09:45have get your entry time frame after
09:47that you can get uh
09:49your entry time frame for refining your
09:51entry to reduce risk you when you get an
09:53entry always make sure you refine your
09:55energy to get a better risk to that
09:58if you can choose these three time
09:59frames uh your risk is always going to
10:01be less even if you have many losing
10:03trades but your wins always going to be
10:05bigger and cover the small losses
10:07because if your risk ride ratio is okay
10:09uh that your wins are always going to be
10:11bigger than your losses right
10:14that would be made we shall spoke speak
10:16about that at length in a different
10:18video that we shall make on risk
10:22after defined direction identify
10:25right after identifying structure then
10:28identify the break
10:29and wait for the price to return to it
10:32pretty the same as the the breaker block
10:34if this is
10:36effect this is a mitigate this is the
10:38mitigation of this move up and the
10:40market breaks down so you're going to
10:41come and mark here the last other block
10:43the last
10:44bearish order
10:45mitigated this move up
10:47and then wait for the price to return to
10:49it some of us trade these reversals yeah
10:51it's okay in case you're a reversal
10:53trader you can trade this reversal here
10:55also alternatively if you trade
10:57continuations you can wait for the
10:59market here wait for a change of trend
11:00and then
11:02drop down that's the last point we're
11:03speaking about make sure you're always
11:05waiting for a change of trend without
11:07change of trend and confirmation there's
11:09no trade
11:10please avoid
11:12sniper entries
11:14your sniper entry can come with better
11:16refining when you when you learn to
11:18refine better you'll you'll always find
11:20out that you have sniper entries
11:22but do not just take trades because
11:24you've reached your level i've seen many
11:25people are trading using other blocks uh
11:28making this mistake whether you're
11:29trading uh breaker blocks or your
11:31trading mitigation blocks
11:34most of us are making these mistakes we
11:36just we're just saying that we're taking
11:38the trade at the week of that candle the
11:40body of the candle or halfway the body
11:42and then the stop loss is below
11:44if you're trading synthetic indices in
11:46most cases you're going to be wiped out
11:48and then the market goes in your
11:49direction always wait for change of
11:51trend which is very very important
11:54now having looked at uh how these things
11:57uh how the mitigations look like or how
11:59we use them this is theory let's try to
12:02go to the chat and then we see
12:04how we act how they actually look like
12:06in on the real chat and then also what
12:09we've been speaking about the break and
12:11then waiting for it to return and all
12:12that okay so i'm going to use an example
12:15on v75 um today i'm using the h4 time
12:18frame because uh what we are studying
12:20you can use it in any time frame
12:22the only on the only difference is going
12:24to come in in what you're using uh it
12:27for in and in what in what time frame
12:29because different time frames have
12:31different purposes
12:33so i've been using mostly big time
12:34frames but now let's let's use the small
12:37time frame and i'm doing it on vc75
12:40which is an in this in case you don't
12:42have an account for trading and this is
12:43just create a demo account and start
12:46right i'm going to leave the link in the
12:48description now
12:51let's start from here uh where anyway we
12:53can start from here where
12:55but let's use that which is clearly
12:56visible to you guys
12:58and the first one i'm seeing is this
13:00structure here do you guys see this big
13:01structure i live on the noise in here
13:03let's just take the structure that is
13:05clear or is trade what you can clearly
13:07see if something is not so clear to you
13:10it's better you leave it out so we're
13:12taking this structure here that is very
13:13visible to you guys and we have said uh
13:16what we're interested in is to see
13:18a structure that has given us a lower
13:21either lower high or it has given us
13:23something like something like this sorry
13:26they're just giving us a lower high uh
13:28something like this which has given us
13:30uh something like this uh a higher low
13:32is they higher low we're looking for a
13:35lower high it's one of the two things
13:37we're looking out for now here we have a
13:39lower high here
13:41say hi to cellular high so what we want
13:43we want to identify uh
13:46uh the uh the the order the other block
13:48that gave us a push-up so here we're
13:51going to identify this is our last uh
13:53can that gave us that push-up that made
13:55the failed push right the failed push up
13:58to give us this
13:59lower high here
14:00right so this is the candle that gave us
14:03that and
14:04when we had this significant break this
14:06is a break of structure how you guys
14:08call it
14:09right but here i will just see a break
14:11of a neckline it's a structure yes so
14:13after an m i expect a retest of the
14:16neckline then in uh people who trade
14:18other blocks like what we are speaking
14:20about right now they say that since a
14:22break of structures are cut we have to
14:24return to this other block here which is
14:26the mitigation block right it's just the
14:31now the market came back you can create
14:33it came back in this area here and then
14:35gave us this strong drop here
14:38but also as it was doing that it gave us
14:41another opportunity here
14:43give us this lower high again you see
14:45this lower high
14:46let me just delete this
14:49i'll just delete this
14:53since we have seen that example
14:56so i'm going to just show you this this
14:58is what i'm talking about created again
14:59this lower high here
15:01then we are so interested in this candle
15:03here right that give the failed
15:06push up the mitigation okay the market
15:08came back here attempted to take it out
15:10but failed and still continue pushing
15:12down right
15:13and then when we move forward again
15:16we shall identify that again the market
15:18gave us uh
15:20these lower high here right this whole
15:22structure this is the whole structure
15:24i'm talking about
15:25push up down mitigated it failed to take
15:28out this
15:29and broke structure right
15:32so what are we interested in we just
15:34identify the
15:35the candle that gave gave us that failed
15:37push which is this one here
15:39the other block uh we have looked at how
15:42to identify the other block
15:44uh in one of our previous videos so you
15:46can just check it out in case you don't
15:48so then it gave us the push
15:51down but all these things will keep
15:53happening the market again created the
15:55same thing here
15:57you can see this this is a lower uh a
16:00lower high so we're getting interested
16:01in this candle here
16:03right so it keeps
16:05uh repeating the same thing
16:07but if it looked the other way around
16:08it's just an m we looked at three types
16:11of m's
16:12but if you're interested in trading in
16:14the older block format it's still okay
16:16right so the same things keep happening
16:19the same happened here
16:21the same happened here
16:24just keeps happening and now the same
16:26thing happened here you can see this
16:28this is a clear lower high right so what
16:31are we interested in
16:32we're interested uh in the
16:35we're interested uh
16:38in seeing the market coming back to test
16:40the the last kind of red candle that
16:43gave us the push at mitigated and
16:45it was this scandal here and you can
16:46clearly see
16:48the market pushed down failed to come
16:50back to it here which is okay because
16:51trading needs patience
16:53and what happened it dropped right
16:56and then it came back to it and
16:59gave us a
17:01significant push down right
17:03now uh
17:05we have been looking at the ones that
17:06have been giving us our pushes down so
17:09let's try to look at also the ones that
17:10did give us pushes
17:12uh upwards we looked at sales we're
17:14giving ourselves now i want to look at
17:16buy so
17:17you cannot identify a w and i'd want you
17:20interested in the neckline
17:21or you can use the other block
17:24now what we're interested in is the
17:26that the condo that gave us a failed
17:28push downwards
17:30so here we're going to be looking at the
17:33the last red candle that uh
17:36uh sorry the last bike handle that gave
17:38us the push down and in this case uh
17:41which one is it going to be it's going
17:42to be this green candle here so
17:45this whole area
17:47this one here is where we
17:49we expect the market to come down to so
17:51here when it was going it failed to come
17:53back it pushed up this is not a a
17:56progressive move so what happened the
17:57market came back down when tested here
18:01gave us significant push up
18:03right so also when we came back here
18:05what happened
18:07the market gave us uh a mitigation
18:10it failed to take out this law because
18:12it was making laws and all that so what
18:14are we interested in we're interested in
18:16this whole area here and the market
18:20went broke above came back tested it and
18:22then gave us the push
18:26you just keep for the buyers identifying
18:29which uh way it failed to make lower
18:32and you keep uh marking the order block
18:35in that
18:36area that gave you the the failed push
18:41they failed push downwards to make a
18:42lower low so that's how we do identify
18:47mitigation blocks
18:48and how do we use them
18:50it depends on what type of trader you
18:53some traders would like to trade at this
18:55test here
18:56some would wait after this breakout
18:59would wait for it here and then take the
19:02uh for example yes after this push up
19:05some like trading the retests because
19:07they're the marketing retailers so it
19:08kept pushing up some likely trading this
19:11retest here but some way what would like
19:14to wait for it in this area before they
19:16can take the trade
19:18or just decide what type of trader you
19:20are are you a reversal trader or a
19:22coordination trader and then you can
19:24identify where you can take the trade
19:26so that is it for today's video i hope
19:28it made sense to you and it was a bit
19:31and um
19:33if the made
19:34you got value out of it you can just uh
19:36click that likes button and if it's your
19:39first time coming across our videos
19:41and it made sense to you
19:43do not forget to click the subscribe
19:46have a great time
Chat with video

FAQs about This YouTube Video

1. What are mitigation blocks in trading?

Mitigation blocks in trading are moves in the market where the strength has been reduced. They signify a decrease in the momentum of a particular trend, indicating a potential change in the market direction.

2. How can traders identify mitigation blocks?

Traders can identify mitigation blocks by observing the market for signs of reduced strength and momentum in a particular trend. Common indicators include decreasing volume, narrowing price ranges, and weakening price action.

3. What are the types of mitigation blocks in trading?

The types of mitigation blocks in trading include accumulation blocks, distribution blocks, sideways consolidation blocks, and exhaustion blocks. Each type represents a specific stage in the market where the strength has diminished.

4. How can traders effectively trade mitigation blocks?

Traders can effectively trade mitigation blocks by waiting for a change of trend and confirmation before entering a trade. This strategy helps in minimizing risk and maximizing potential gains in the market.

5. What is the key strategy for trading mitigation blocks?

The key strategy for trading mitigation blocks is to wait for a change of trend and confirmation before entering a trade. By exercising patience and confirming the market direction, traders can make informed decisions and improve their trading success.

Save time on long videos, get key ideas instantly

⏰ Grasp the gist of any video in seconds
✨ Get the key insight of the video
🪄 No barriers to support 20+ languages of summaries
👀 Navigate through timestamped breakdowns
Get AI Summary Now

More Long YouTube Videos Summaries

The Profit Singularity course teaches outdated methods that do not work on Google ads, leading to disapproved campaigns and wasted investment. The landing pages provided lack sufficient information and fail to generate sales. It is recommended to find a different approach for affiliate marketing success.

The video discusses the importance of creating a living trust and generational wealth, following the example of Rockefeller. By structuring a trust and utilizing compound interest, one can ensure the financial growth and security of future generations. It is crucial to involve a trust attorney and have open discussions with family members about the long-term plans for the trust.

The video tells the story of Maurice Theriault, who was allegedly possessed by demonic spirits and underwent a failed exorcism, leading to tragic consequences. Maurice's possession caused years of violence and terrifying events for his family, ultimately resulting in his own death.

This video provides a comprehensive guide on choosing classes in Black Desert Online for different playstyles, including meta, solo, group PvP, speedy grinding, AOE damage, support, ranged assassins, combo-oriented, and extra gameplay experiences. The video also mentions the top ten classes based on various sources, as well as the top five most fun and easiest classes to play.

This video explores the controversies and attempted cancellations faced by Game Theory and its host, matpat, including issues with artwork credit, criticism from PewDiePie, and a video on the coronavirus.

This video provides tips on studying effectively, drawing inspiration from the character Light Yagami from Death Note, emphasizing the importance of sleep, reducing screen time, and implementing a revisiting technique to reinforce learning.