Mitigation Block Calculator
Identify mitigation blocks where unfilled orders remain from previous price action. Enter values for instant results with step-by-step formulas.
Reviewed by Daniel Agrici, Founder & Lead Developer
Formula
Optimal Entry = Block High - (Block Range x 0.618) for bullish | Stop Loss = Block Low - Buffer
The entry is calculated using the 61.8% Fibonacci retracement of the mitigation block range. For bullish setups, measure from the block high down. For bearish setups, measure from the block low up. The stop loss is placed beyond the opposite end of the block plus a buffer.
Worked Examples
Example 1: Bullish Mitigation Block on EUR/USD
Problem:A bullish mitigation block is identified on EUR/USD with a high of 1.0950 and low of 1.0900. Current price is 1.0920. Calculate entry, stop loss, and take profit at 3:1 RRR.
Solution:Block Range = 1.0950 - 1.0900 = 0.0050 (50 pips)\n61.8% Entry = 1.0950 - 0.0050 x 0.618 = 1.0919\nStop Loss = 1.0900 - 0.0005 (5 pip buffer) = 1.0895\nRisk = 1.0919 - 1.0895 = 0.0024 (24 pips)\nTake Profit = 1.0919 + 0.0024 x 3 = 1.0991\nReward = 72 pips
Result:Entry: 1.09191 | SL: 1.08950 | TP: 1.09913 | Risk: 24 pips | Reward: 72 pips (3:1 RRR)
Example 2: Bearish Mitigation Block on GBP/USD
Problem:A bearish mitigation block on GBP/USD has a high of 1.2750 and low of 1.2700. Calculate the optimal short entry with 5-pip buffer and 4:1 RRR.
Solution:Block Range = 1.2750 - 1.2700 = 0.0050 (50 pips)\n61.8% Entry = 1.2700 + 0.0050 x 0.618 = 1.2731\nStop Loss = 1.2750 + 0.0005 (5 pip buffer) = 1.2755\nRisk = 1.2755 - 1.2731 = 0.0024 (24 pips)\nTake Profit = 1.2731 - 0.0024 x 4 = 1.2635\nReward = 96 pips
Result:Entry: 1.27309 | SL: 1.27550 | TP: 1.26349 | Risk: 24 pips | Reward: 96 pips (4:1 RRR)
Frequently Asked Questions
What is a mitigation block in ICT trading?
A mitigation block is a price level in ICT methodology where institutional orders from a previous move remain partially unfilled, creating a zone where price is likely to return and react. When smart money places a large order, not all of it gets filled in a single pass through a price level. The unfilled portion remains as a pending order that will be executed when price revisits that level. This creates a predictable reaction point that traders can use for entries. Mitigation blocks are typically identified by looking for candles that initiated a strong move but were later revisited, with the body of the initiating candle serving as the key zone.
How do mitigation blocks differ from order blocks?
While both concepts involve institutional order flow, mitigation blocks and order blocks have distinct characteristics. An order block is the last opposing candle before a strong impulsive move, representing where smart money originally entered their position. A mitigation block, by contrast, represents a level where previous institutional orders were only partially filled and need to be completed or mitigated. Order blocks are typically traded on the first return of price, while mitigation blocks can be traded on subsequent returns. Additionally, mitigation blocks often form at previous order block levels that have already been traded once, making them second-touch or third-touch reaction zones.
How do I identify valid mitigation blocks on a chart?
To identify valid mitigation blocks, look for candles that created a strong directional move followed by a retracement that revisited the origin of that move without fully negating it. The key criteria include: first, a clear impulsive move away from the level showing strong institutional interest. Second, a subsequent return to the level where price reacted but did not create a new extreme beyond the original move. Third, the body of the candle at the mitigation zone should show clear rejection wicks. Use higher timeframes (4-hour and daily) to identify the blocks and lower timeframes (15-minute and 1-hour) to refine entries. Valid blocks typically show decreasing volume on the return, suggesting unfilled orders rather than new selling pressure.
What is the optimal entry strategy for mitigation block trades?
The optimal entry strategy for mitigation block trades involves using Fibonacci retracement levels within the block itself. The 61.8 percent retracement of the block range provides the best risk-to-reward ratio while still offering a high probability of being filled. Place your entry order at this level with a stop loss below the block low (for bullish setups) plus a small buffer of 3 to 5 pips. A more conservative approach uses the 50 percent level of the block, which has a higher fill probability but slightly worse risk-to-reward. Always wait for a market structure shift on the lower timeframe before entering, as this confirms that smart money is indeed defending the mitigation block level.
References
Reviewed by Daniel Agrici, Founder & Lead Developer · Editorial policy