💫 Summary
The video explains the difference between a breaker block and a mitigation block in trading, emphasizing that the breaker block makes a higher high, while the mitigation block makes a failed swing high. It also provides examples and guidelines for identifying these blocks in price action, as well as the significance of fair value gaps in forming support and resistance levels.
✨ Highlights📊 Transcript
The video explains the difference between a breaker block and a mitigation block in trading.
The only real difference between the two blocks is that the breaker block makes a higher high, while the mitigation block makes a failed swing high.
Mitigation blocks are more common during price retracements or when price is on a downtrend.
Breaker blocks are tucked in, while mitigation blocks are not.
The video explains the concepts of breaker block and mitigation block in ICT trading.
Breaker block is the lowest closed candle in the most recent swing low prior to the higher being run.
Mitigation block occurs when price action makes a swing high, retracement, and then a failure swing high, followed by a swing low that disrespects the lows.
The lowest down close candle in the swing low is considered the entry point for the mitigation block.
Mitigation blocks are failed swing highs, while breaker blocks are the highest high before a lower low.
Up candles or retracement are also mitigation blocks.
Breaker blocks should be in line with a fair value gap.
Price arrays provide support and resistance, drawing liquidity.
Breaker blocks give more confidence in trades.
00:00what's going on guys and welcome to
00:02another video by LD the trader today we
00:05are going through the difference between
00:06a breaker block and a mitigation block
00:09now these two do get easily confused
00:12confused and I completely understand why
00:15but today we're going to go through why
00:17these two uh price arrays are different
00:19okay so let's jump straight into it
00:22so the breaker block and the mitigation
00:24Block in my opinion are relatively kind
00:27of the same
00:29the only real difference between these
00:32two blocks is this
00:34bear with me
00:42lower low
00:51this would be the break breaker
00:58make sure it's tucked in
01:00so what would the mitigation be like
01:07fail swing High
01:16this is the early difference between the
01:19breaker block and the mitigation block
01:21the breaker block makes a higher high
01:23whilst the mitigation block makes a
01:24failed swing High now mitigation blocks
01:27are a lot more common within price
01:29section as when price is on a downfall
01:31or an up uptrend or whatever you want to
01:33call it the retracements or classes
01:36mitigation blocks because they're failed
01:37swing lowers and failed swing highs if
01:39you feel a little bit lost don't worry
01:41we're going to go through it in actual
01:42price in a second
01:43so what actually is a breaker block
01:46the breaker block is the lowest down
01:48closed candle in the most recent swing
01:50low prior to the higher being run that
01:52is a bearish example vice versa for
01:54bullish when it comes to the breakup I
01:56got taught this by one of my mentors
01:59always think this for a bearish example
02:06higher high lower low
02:08then that's a breaker
02:10if you want a um a bullish example
02:13we'll go
02:18lower low
02:20higher high
02:24there we go just like that
02:27that would be a good bullish example
02:30the definition for a mitigation block a
02:32mitigation block is when price actions
02:34makes a swing High then a retracement
02:36then a failure swing High respecting the
02:38current highs we then want to see a
02:40swing low disrespecting the lows causing
02:41a market structure shift after this has
02:44happened you want to highlight the
02:45lowest down close come to win the swing
02:46low and this will be considered your
02:48entry point in the mitigation block
02:50so the first thing I see here
02:53let's jump straight into us 500.
03:01failed swing High
03:03low so what would this be what would
03:06this last down close candle be would it
03:08be a breaker or mitigation
03:11if it's a mitigation
03:13that will be correct
03:15these up candles here aka the
03:18retracement are also classed as
03:19mitigation blocks why because these are
03:21failed swing highs these candles here
03:24are attempted to go break Above This
03:27high but have tremendously failed some
03:29classes order blocks you can class these
03:31are order blocks at the same day it
03:33still does the same job it don't really
03:35matter it's not that deep
03:37so remember that saying I said for a
03:39bearish one hi
03:41low higher high
03:44lower low
03:47where would the breaker block be three
03:50two one
03:52that one right there
03:55and just how I like it
03:59in line with a fair value Gap
04:04now why do I like it in line with a fair
04:06value Gap because you've got to think
04:07price arrays are there to provide
04:11support and resistance as well as
04:13drawing liquidity but in this instance
04:15it'll be support and resistance
04:19a break is a price away
04:21so it's a fair value Gap if you have two
04:24next to each other in the the same price
04:26at the same value it's going to provide
04:29like an as you can imagine an extra
04:31strong area of resistance you know what
04:34I mean so it's amazing when it lines up
04:37it gives me so much more confidence with
04:38whatever trades I'm taking and yeah I do
04:41love the breaker block so yeah a very
04:43nice simple and quick video today I hope
04:45it makes sense for you guys I hope you
04:46can now notice the difference between
04:47the mitigation and the breaker block
04:50so the next one take care peace
Chat with video

FAQs about This YouTube Video

1. What is the difference between a breaker block and a mitigation block in trading?

In trading, the breaker block makes a higher high, while the mitigation block makes a failed swing high. The breaker block is characterized by a strong move to the upside, while the mitigation block represents a lack of upward momentum.

2. Can you provide examples and guidelines for identifying breaker blocks and mitigation blocks in price action?

Breaker blocks can be identified in price action when there is a clear shift in momentum and a decisive move to the upside. On the other hand, mitigation blocks are identified when the price fails to make a significant higher high and shows signs of weakness in the upward movement.

3. What is the significance of fair value gaps in forming support and resistance levels?

Fair value gaps play a crucial role in forming support and resistance levels as they represent areas where price has deviated significantly from its fair value. These gaps often act as key levels where price tends to react, making them important for identifying potential trading opportunities.

4. How can traders use the concept of breaker blocks and mitigation blocks to improve their trading strategies?

Traders can use the concept of breaker blocks and mitigation blocks to identify potential trend reversals and pivotal price levels. By understanding these concepts, traders can make more informed decisions on entry and exit points, as well as effectively managing risk when trading.

5. What are the key takeaways from the explanation of breaker blocks and mitigation blocks in trading?

The key takeaways include the importance of identifying breaker blocks and mitigation blocks in price action, understanding their significance in forming support and resistance levels, and leveraging these concepts to make more effective trading decisions.

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