Mitigation Blocks in Trading 1. What is a Mitigation Block? A mitigation block is a key concept in smart money trading. It refers to price zones where the market often pauses or reverses due to institutional activity. These blocks act as areas where unfilled orders are mitigated, allowing large players to complete their positions. Types of Mitigation Blocks: Bearish Mitigation Block: This appears during a downtrend and indicates areas where the price may retrace before continuing downward. Bullish Mitigation Block: This appears during an uptrend and signals areas where the price may pull back before moving higher. 2. How to Identify Mitigation Blocks To identify mitigation blocks, you need to consider the market context, the reasons behind price movement, and the levels where the price reacts. Here's how they are formed: Bearish Mitigation Block Market Context: A b...
Stock Trading Guide What is Stock Trading? The Foundation of Financial Markets Stock trading is the act of buying and selling shares in a particular company. When you purchase a stock, you're essentially buying a piece of that company, making you a shareholder. For instance, if you were to buy a share of Apple, you'd be owning a tiny fraction of the tech giant. The main objective? To buy stocks at a lower price and sell them at a higher one. Engaging Question: Ever wondered why stock prices fluctuate daily? It's the result of supply and demand dynamics in the market. Different Types of Stock Markets The Playground of Stocks Primary Market: Where new stocks are issued for the first time, often referred to as an Initial Public Offering (IPO). For instance, when Facebook went public in 2012, it was through an IPO. Secondary Market: Where investors buy and sell stocks they already own. The Ne...