Discussing the article: "Reusing Invalidated Orderblocks As Mitigation Blocks (SMC)"
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Check out the new article: Reusing Invalidated Orderblocks As Mitigation Blocks (SMC).
In this article, we explore how previously invalidated orderblocks can be reused as mitigation blocks within Smart Money Concepts (SMC). These zones reveal where institutional traders re-enter the market after a failed orderblock, providing high-probability areas for trade continuation in the dominant trend.
In Smart Money Concepts (SMC) trading, orderblocks represent key areas where institutional traders accumulate or distribute positions before driving price in a particular direction. However, not all orderblocks remain valid—some are violated as market conditions evolve. When an orderblock fails to hold, it doesn’t necessarily lose its significance; instead, it transforms into a potential mitigation block. This concept focuses on how price often retraces back to these invalidated zones to “mitigate” remaining orders before continuing in the direction of the new trend, offering traders deeper insight into institutional intent and market structure behavior.
The idea of reusing invalidated orderblocks as mitigation blocks allows traders to recognize where smart money might re-engage with the market after shifting bias. By studying how price interacts with these areas, traders can anticipate high-probability entries that align with the new directional flow. Understanding this transformation from orderblock to mitigation block enhances precision in timing entries, and managing risk.
Author: Hlomohang John Borotho