Original subtitles

all right hello everyone hope you're

doing all right welcome back to the

second video we are going to talk about

mitigation blocks so I hope everyone has

done their homework

I hope everyone has studied order blocks

then the next thing for you to do after

this video up until Tuesday 8 30 a.m

when we talk about next topic study the

mitigation block and the order block so

study both things you might notice that

you like one of them more than the other

so you might like order blocks more you

might like mitigation blocks more that's

perfectly fine you don't need to know

everything in order to be profit find

the thing you like and run away with it

then as well this Sunday 8 30 am the 7th

of May I'm going to be doing a live

stream here on YouTube I'll have a

reminder in my telegram link is in the

description and we are going to be

mainly going over mindset

Etc because I feel like a lot of people

have been struggling the past few weeks

and that's exactly what I want to touch

on alright now let's dive straight into

it so for a mitigation block I have

these few structured steps right here

the first one is pattern the second one

is a low slash High the third one is

overlapping now of course the steps

won't make any sense if you don't watch

the videos and that's the purpose of

them so if we take a look at the first

step the first step is pattern now the

first thing I want you to acknowledge

and this is very simple you don't need a

lot of knowledge for you to understand

this pattern the first pattern is

basically

we have a down move just a down move

then we have another up move this up

move fails to take out this high this is

a swing High swing High swing low will

touch on it in a later topic this low

this swing low fails to take out this

swing high and then we see another

rejection lower this is a swing failure

again that's something we'll touch on in

later videos as well so don't worry

this pattern is called a swing failure

pattern now what this swing filler

pattern creates is a mitigation block so

right here if we trade back into this

low

there is our mitigation block and then

we continue lower

now the third one is overlapping

overlapping is indicating at this

mitigation block there's another premium

array in this case premium array because

remember we're going lower we are

looking at premium arrays

there's another premium array

overlapping with the mitigation block so

that could be a fair value Gap here but

that could also be what we learned in

the first episode an order Block in this

leg right before we take out the low

there might be a little bearish order

block right here overlapping with the

mitigation block and that makes two

premium Rays that's double as strong as

one mitigation block alone so right here

we have the pattern we have our swing

failure pattern so write that down it's

a swing failure pattern the next thing

is the low in this case the low slash

high if we turn this thing around we

have the same exact thing we have the

pattern right here we have the high and

then we continue higher now you might

say this is support and resistance well

yes you're not wrong but the thing that

makes it so strong is the logic behind

find it and the thing why support and

resistance sometimes works is because

you'll see this exact pattern now the

logic behind it is if if we are moving

lower there will be buyers right here in

this low and they will buy this leg up

now once we move lower

and we retrace back up to this low then

the buyers the buyers in this leg have a

chance to mitigate their buy orders AKA

take a loss Etc or take a break even and

then price is able to continue lower

so for example let's say we are retail

Traders and I don't mean retail as in

the individual Trader I mean retails in

the retail Concepts the support and

resistance concept let's say we saw some

nice support right here and we are

buying this

alright we're getting a rally perfect

now we drop down immediately we're in

drawdown now the next thing price

retraces back to our entry we are able

to mitigate that order and we can close

it Earthly fine now there might be some

traders that got in right here and then

they take a little bit of a net loss

perfect and that's what we need this

liquidity for price to move now

like I said in the previous episode

we need for every buyer we need a seller

for every seller we need a buyer now

does that mean that Average Joe behind

his monitor is getting taken out of the

market because his five Lots is what the

central banks and the institutions need

no

so if you ever see someone saying oh the

market is hunting me well you're you're

100 Lots don't really matter we are

talking about institutions that are

trading retail Concepts so the big big

big boys not your neighbor that's

putting 100 Lots on gold no that's not

relevant and that's important to

acknowledge because a lot of people

think they are getting hunted by the

market just because they placed an order

this is not necessarily true now if you

place an order on a b Book Broker open

up the spreads they take you out and

then it continues that's what happens a

lot of the time on a b Book Broker so if

you choose a broker I'm not here for you

to use my affiliate link and go to my

broker that's not what I'm doing here do

your own research and make sure you're

not trading on a b Book Broker not

Financial advice as well first practice

in demo and Brokers is something we can

get into later on alright with this bit

of the logic behind it Etc now of course

make your own logic if this logic is not

completely true perfectly fine if it

works for you then it works for you and

that's all that matters so if there's

someone on Twitter that's telling you no

you don't have the right logic just tell

them thank you for your opinion I'm

going to do my own thing no need to get

into an argument or anything we just

focus on ourselves here all right now

let's take a look at some live examples

right here let me remove these things so

the first one can you notice the first

one right here it's the same exact

pattern that we just had it's right here

notice this down move

the retracement up this low fails to

take out this high

then we have a swing failure the swing

this swing up pills to take out this

High a swing failure

we continue lower and then we have a

slight retracement right here

into what your mitigation block right

here now let me remove the lines just to

make it a bit more clearer and where do

we take the mitigation block the low

slash High we are bearish so we take the

low of the mitigation block this can be

the absolute low of the wick doesn't

have to be the body so right here boom

and again you can apply the same logic

if you want to if that Wick isn't

overlapping with a fair value Gap then

you take the body if the wick is

overlapping with a further Gap then you

take the wick that's up to you those

minor differences that's a little

personal preference just because you

select the wick or the body is not going

to make you a millionaire all of a

sudden that's not what it's about and

that's what a lot of people think right

they they think oh is he is he selecting

the body or is he selecting a wick just

do what you prefer just because he

selected the wick or the body that's not

going to be a major Game Changer but

again if you want to make it easy for

yourself stick to the rule if the wick

is overlapping with a profile Gap then

take the wick if the wick isn't

overlapping with a verify Gap then take

the body alright but the last step right

here is number three overlapping and

again if you don't know what a fair

value Gap is just yet perfectly fine

because then later these videos will

make even more sense when you re-watch

them not if when you re-watch this video

so the overlapping if you know what a

favorite cup is what's overlapping with

this mitigation block a fair value Gap

and this is exactly what makes the

mitigation block so strong and other PD

arrays as well when there's something

overlapping right here we have a fair

value Gap and this is what makes it so

so strong and this is as well for the

advanced Traders

when we notice this pattern price

doesn't have to come all the way back up

into here this is already fair value or

price to continue lower and that's

exactly when a mitigation block is so

strong and this is how I like to trade

mitigation only when there's something

overlapping preferably a fair value Gap

alright so let's take a look at some

more examples and some bullish examples

as well so right here we have a bullish

example and again if you do feel like it

it's perfectly fine to pause the video

and try to spot the mitigation block or

any other block beforehand and before I

touch on it this way you will learn

faster alright so we have the pattern

right here we have this big up move

right here

we have this down move this I fails to

take out this low and even this low

continues higher

which creates

a mitigation block

now it's very important for you to

acknowledge and this is as well for you

to write down it's a swing failure and

write down as well it's not a breaker

pattern now you might not know what a

breaker pattern is just yet but it's a

different sort of thing there's a swing

failure and a breaker better write it

down come back to it later on when we

touch on Breaker blocks and then it will

make more sense so it's essential for us

that we have this big move up first

and then a high that fails to take out

the low

continue higher which creates

the high

a mitigation block now in this case if

we do apply that rule let's then take

the body instead again personal

preference if you want to stick to that

rule then perfectly fine stick to the

rule the thing is on this High we take

the up candle of the mitigation block so

here we take the up candle just like we

saw on the previous example when it's a

bearish mitigation block we take the

down candle now what is overlapping see

this right here

there's an overlapping fair value Gap

with that mitigation block and that's

exactly what I like so much about

mitigation block combined with a perfect

Gap or as you'll see in another example

combined with a border block as well

alright so here we have another example

now it gets interesting and again these

things are not rocket science they are

very simple structured easy steps

trading is not a rocket science and it's

not supposed to be if we can keep it

simple and there's a reason why we keep

it simple and that's what I touch on a

lot in the mentorship there's a specific

reason why we keep things simple and why

it's so so so important now if we take a

look at this mitigation block right here

we have the pattern the swing fill your

pattern

we have the high

and we have something overlapping see

what's overlapping it's an order block

at the mitigation block and a verify Gap

that's three discount arrays at the same

exact spot remember that because that's

important the more overlapping PD arrays

are at one spot the stronger the defense

is so right here we take the up candle

because it's a bullish mitigation block

the mitigation Block in itself is

overlapping with a fair value Gap

and then just below that fair value Gap

we have this order block as well

remember what an order block is remember

the steps of getting to an order block

this is the exact steps and this is what

makes a mitigation block so super strong

all right now let's take a look at one

more example and then you're going to

head into your own chart and do your own

work as always remember if you don't do

the work yourself then these videos will

always just be some sort of

entertainment for you watching videos

without integrating the stuff and

without working on it is just

entertainment nothing more alright so

right here we have another example and

you can see how I'm using different time

frames because this is a fractal thing

every one of these topics is completely

correct now the higher time frame the

higher the time frame we use the

stronger the PD Ray so if we're looking

at a weekly right now this will be

stronger than a daily or a four hour

video why the biggest orders are on the

biggest time frames and if we know this

effect then why not focus on the higher

time frame and understanding the higher

time frame because that's where the real

orders are of Institutions etc etc so

again the same exact pattern swing fill

your pattern this High fills to take out

this low

we move higher after this high

and this is what you'll see a lot right

after we take the high and we close

above it we have a fair value Gap right

here overlapping with the high or an

order block like we just saw and we move

back into the mitigation block with the

overlapping discount array we move

higher now remember what I said this

happens a lot when we close Above This

High close not wicking the high and then

we have a short-term return and then we

push even higher so a lot of people say

we have this mitigation block right here

we have the swing filler pattern right

here and now we're coming back all the

way down would you still use the

mitigation block no I personally

wouldn't I would look at something on

the higher time frame but from what I

can see this mitigation block has

already been used we've already traded

back into it short term here this was

our opportunity right now we just wait

for new price action so we take the low

slash the high in this case we take the

high obviously overlapping or width of

your value Gap and we push higher again

swing for the pattern we close above it

and that's a little golden nervous for

you if you made it to the end we close

above it then we have a short term

return another little Golden Nugget for

you you're getting rewards for if you

stay to the end of these videos and then

we rarely hire close short-term return

rally higher then we have the swing

filler pattern the high in this case

because it's a bullish mitigation block

and it's overlapping with a verify gap

or like we just saw on the previous

example overlapping with an order block

or another Discounter alright now for

you I want you to study this on your own

I want you to make up your own logic of

it I want to see if you can make up your

own pattern of it so if you recognize a

few things that happen over and over and

over and over when these mitigation

blocks hold but also look at a few

mitigation blocks see if you can spot

them that failed is obviously not every

mitigation block will hold even if they

are as clean as this one and that's the

reality of trading all right I want to

thank you quick reminder live stream on

YouTube right here this Sunday 8 30 a.m

New York eastern time and we are going

to talk about the mindset the Trader's

mindset the champion mindset and the

next video on the A to Z guide is

obviously Tuesday 8 30 am New York

eastern time as well alright thank you

and make sure to do the work thank you

thank you

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