Mitigation- a crypto trading technical analysis strategy.

Trading in the crypto ecosystem comes with lots of psychology. As an investor or trader, you have to understand the psychology of trading. Many investors have liquidated their funds because they were unable to understand the psychology of the market. 

Understanding the psychology of the market comes with different parameters or concepts; you just have to pick the one that suits you the most and leverage on it. Most traders like to make use of smart money concepts (SMC), with which most financial institutions operate within the market. 

You should understand that SMC is very encompassing, it has some areas like order blocks, liquidity, break in market structure, shift in market structure etc. Another concept many traders leverage their trade upon is mitigation. Mitigation is somewhat beneficial, which gives investors a good strategy to milk the market. 

 

Mitigation.

In trading, their various traders try to salvage risk in one way or another; one of these ways is mitigation. In conventional terms, mitigation is just a way financial institutions prevent risks and losses from occurring or happening, and they devise a lot of various parameters to achieve this.

 

Irrespective of that, in crypto trading technical analysis, mitigation is believed to be the filling of an order block. That is, when an order block has been filled, it is believed that the order around the order block has been picked up, and then mitigation has happened.

 

Order blocks are basic areas where traders determine whether to enter the market or exit [buying and selling] the market. At that point, traders are looking out for basic order blocks that have already been mitigated before they could pick up trade. If mitigation doesn't occur, the trading around the order block is invalid.

 

How does mitigation work?

Traders device various techniques to trading market mitigation is one technique they deploy for excellent trading. How does this work in trading? When studying the character of the market as a trader, what you should pay attention to is the impulsive move of the trading chart and how various order blocks are positioned. The first thing is to find a confirmatory entry on the chart. Then trace down to the last bullish candle before the break of the structure to place your order.

 

When the last bullish candle has taken its place, every trader is expecting the market to mitigate the bullish order block pick-up trades. You should understand that not every order block is mitigated.

 

How do I place an order?

Since mitigation is another strategy for traders professionally, the major thing is to understand how and where to position your trade professionally without any glitches over time. When you see the first bullish trend after the confirmatory entry, you wait for the next order block to mitigate the first order block. Wait for it to pick up first before placing a trade. it important to know about order blocks.

Definitely,  after the mitigation, the next swing might be to take profit. Don't take orders without first seeing a mitigated order block.

a candle chart representation of mitigation.