ICT Breaker & Mitigation Blocks EXPLAINEDToday, we’re diving into two powerful concepts from ICT’s toolkit that can give you an edge in your trading: Breaker Blocks and Mitigation Blocks. There are one of my favourite PD Arrays to trade, especially the Breaker Block. I’m going to explain how I interpret them and how I incorporate them into my trading. Stay tuned all the way to the end because I’m going to drop some gold nuggets along the way"
Ok, so first of all let’s go through what both these PD Arrays look like and what differentiates them, because they are relatively similar and how they are used is practically the same.
On the left we have a Breaker Block and on the right a Mitigation Block. They both are reversal profiles on the timeframe you are seeing them on, and they both break market structure as you can see here. The actual zone to take trade from, or even an entry from, in the instance of this bearish example is the nearest down candle or series of down candles after price makes a lower low. When price pulls back to this area, one could plan or take a trade.
The defining difference is that a Breaker raids liquidity on its respective timeframes by making a higher high or lower low before reversing, whilst a Mitigation Block does not do that. For this reason, a Breaker is always a higher probability PD Array to trade off from. As you should know by now if you are already learning about PD Arrays such as these is that the market moves from one area to liquidity to another. If you don’t even know what liquidity is, stop this video and educate yourself about that first or you will just be doing yourself a disservice.
Alright, so let’s go see some real examples on the chart. Later on I’ll give you a simple mechanical way to trade them, as well as a the discretionary approach which I use. And of course, some tips on how to increase the probability of your setups.
Pdarray
EURUSD - 30,000 ft ViewIn this video I walk you through EURUSD from the Yearly Chart, down to the Weekly Chart. Going over levels that have been swept, levels I see as upcoming draws on liquidity, and 3 scenarios I see possibly playing out for EURUSD over the next 1-3 quarters.
As always, good luck, have fun, and practice solid risk management.
USDJPY...The Stuff of Nightmares....So I'll cut to the chase, as we may not have much time.... USDJPY Signaling Major Risk Off move, we've only seen the beginning of the "Blood in the streets" "Buy the Dip" moment, IMO.
Take profits, be safe. Protect against Risk Off/Liquidity events, in these globally connected markets...they can cascade quickly, biblically.
4 previous times I've had this signal (it's not related to any indicator on the chart, so don't look for it there). The 4 signals were all correct, and their avg dump to the downside was 970ish pips ( I rounded ). Projected from our current Top....it's a beautiful ICT style PDArray from an area of Premium, to a nice Discount accumulation (tbd at that point).
As always, practice solid risk management, and good luck trading.
DXY Multi-TF AnalysisThis first chart shows DXY, the Major macro leg it's created over the past 18 months or so, and the Premium (Red boxes) and Discount (Green boxes) ranges, along with the EQ's of said leg. As you can see, we're in an area of Discount. So any "smart money" that shorted/sold that 99-103 (Premium) Range, will now likely be accumulating Longs, in this 89-93 (Discount Range).
The Minor Macro Leg (BC), shown in Orange, is our pullback since putting in the Macro Low the beginning of this year. You'll notice, last month we swept the Mar '21 highs, and have since corrected. I anticipate continued downside, until we touch the area below the BC Leg EQ. Ultimately, we're in a Macro accumulation range, but more downside could definitely show itself on the weekly/daily timeframes. The Orange Arrow shows what I'd consider a 'perfect/ideal' Bullish setup...
Now let's take a deeper look into this BC Leg Range, and what's been happening...and what I'll be watching for moving ahead....
Zoomed in, we see the past 4 or 5 months of recent action, on the Daily. The FVG I'm anticipating a visit to is clearly marked. Note, Filling the FVG, or even hitting the FVG EQ would give us a perfect strike on nearly all legs/timeframes....A perfect accumulation spot.
In the near term, I wouldn't be surprised however, if we see a spike in DXY, as indicated by the Green Arrow. We've recently made two taps into our CD Leg EQ...rejecting both times. But we all know, that "engineers" liquidity above this level....A spike up thru, to take out stops should be watched for/anticipated.
Strength above O (the orange dotted, Weekly Open, from 2 weeks ago) on the daily would pause any bearish DXY outlook I have. So far, little to no follow thru has been presented by Bulls above this level. Consequently, closes below O (the orange dotted, Weekly Open, from, you guessed it!! Last week) would have me anticipating lower DXY, and Yellow Arrow (macro) thesis playing out as anticipated.
The markets are pricing in Inflation, Higher Inflation, Hyper Inflation, etc.....rates are ridiculously low....the spigots are open....Easy Money everywhere.... A strong Dollar jeopardizes this.
As always, good luck, have fun, and practice solid risk management!