Understanding Market Mitigation – How Smart Money Minimizes Losses 🔍🏦
Mitigation is an institutional concept where price revisits a zone
to let big players close losing positions or adjust their orders.
Why Mitigation Happens:
Institutions cannot exit instantly.
They need price to retrace to their previous positions.
Price revisiting those zones allows:
Closing partial losing trades
Refining positions
Balancing exposure
Signs of a Mitigation Move:
1️⃣ Strong impulsive leg
2️⃣ Controlled pullback toward the origin
3️⃣ Low-volume retracement
4️⃣ Aggressive continuation in original direction
Example:
Price rallies from ₹620 → ₹700
Retraces to ₹640 (institutional origin)
Continuation rally begins → mitigation complete
Learning:
Mitigation zones are where smart money fills their last remaining orders before a strong move.