Mitigation blocks
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LibraryMarket structure

Indicator

Mitigation blocks

The candle that made a swing, after a failure swing breaks that swing: traders trapped there wait to get out at break even, so price often turns when it comes back.

Market structureOn the price4 inputsMB

How it is calculated

Swings and breaks as in structure. Bearish: a swing low breaks while the last swing high, made after the low, is no higher than the swing high before it (no higher high, no liquidity taken). The last bearish candle at or before the low's extreme is the block, high to low or, with Zone body, its body. Bullish: a swing high breaks after a low no lower than the one before; the last bullish candle at or before the high. It ends on a close through its far side.

Reference: ICT liquidity concepts, from public descriptions (#546)

How to read it

The variant of ICT's public description: like a breaker, but the failed swing took no liquidity. A block shows on the bar of the break, never earlier. The lines show the nearest bullish block (the highest) and bearish one (the lowest); at most max_zones per side are kept.

In a strategy

Sell the return to the block: when m = ctx.ind("mitigation_block", length=3) has m.bear_new of 1, a short limit at m.bear_bottom with the stop above m.bear_top.

Inputs

InputTypeDefaultRange or choices
Swing bars each sidelengthWhole number3min 1, max 50
Break onbreak_onChoice"close"Close, Wick
ZonezoneChoice"wick"Full candle, Body only
Zones kept per sidemax_zonesWhole number20min 1, max 500

What it draws

LineDrawn as
Bullish topSteps
Bullish bottomSteps
Bearish topSteps
Bearish bottomSteps

Used in

No strategy template reads it yet.

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