Market Structure & Liquidity · Entry 54 of 71

What Is Mitigation?

Institutional return to cover and close open risk

Core Definition

Mitigation in trading refers to the price revisiting a previous order block to "mitigate" or "fill" unfilled orders before continuing in the original direction. It's like the market is returning to an area to "balance" positioning, usually after an impulsive move.

Key Mechanics

1. Price moves impulsively, leaving an order block unfilled.
2. Price eventually retraces back to the order block to mitigate or fill remaining unfilled orders, balancing institutional risk before the next major expansion.