What is a mitigation block?
In a bullish mitigation block, price makes a low, rallies to a swing high and pulls back — but the pullback stops above the first low. That higher low shows sellers are weaker. When price then closes above the swing high, the last up-close candle at that high is the mitigation block.
The name comes from the idea that traders who bought at that candle and were trapped in the pullback “mitigate” — close their positions at break-even — when price returns, adding to the buying. A bearish mitigation block is the same pattern upside down.