A mitigation block is a price zone in trading where large institutional participants, often referred to as smart money, return to manage or “mitigate” previously opened positions. It is a key concept in Smart Money Concepts (SMC) and Inner Circle Trader (ICT) methodologies. A mitigation block usually forms after a strong impulsive move when institutions revisit an area to fill remaining orders or reduce exposure before continuing the prevailing trend.

Traders identify mitigation blocks by locating the last opposing candle or group of candles before a significant price movement. When the price later retraces into this zone, it often reacts because institutional orders are still present there. Unlike breaker blocks, which are associated with failed order blocks and market reversals, mitigation blocks are generally linked to trend continuation.

For example, in an uptrend, price may rally strongly, leaving unfilled buy orders behind. When the market pulls back, it can revisit the mitigation block, allowing institutions to complete their buying activity before pushing prices higher again. The same principle applies in a downtrend with sell orders.

Mitigation blocks are commonly used as potential entry points because they can provide favourable risk-to-reward opportunities. Traders often combine them with other tools such as market structure analysis, liquidity zones, fair value gaps, and support or resistance levels to improve accuracy.

Understanding mitigation blocks helps traders recognise where professional market participants may be active, offering valuable insights into potential continuation setups and areas of high-probability market reactions.