Mitigation entry patterns

Tap, then continue

Mitigation is one of the cleanest entry patterns in trading because it has built-in answers to the three hardest questions a trader faces. Where do I get in? At the zone. Where does my stop go? Just outside the zone. Where is my target? At least to the high or low that the original move produced. The structure is symmetrical, repeatable, and works across forex, crypto, indices, and commodities with no modification.

Here is the demand zone version. Price rallies hard, leaves a demand zone behind, and over the next several days it pulls back. Price drifts down toward the zone. As it enters the zone, you watch for a reaction. The reaction can be a strong bullish candle inside the zone, a wick that pokes into the zone and closes back above it, or a shift in short term structure as price stops making lower lows. Any of those signals is your trigger. You enter on the next candle open. Your stop goes just below the zone. Your target is the recent high.

The supply zone version is the mirror. Price drops hard, leaves a supply zone above, and over the next several days it pulls back up. Price drifts toward the zone. As it enters, you watch for a reaction. A strong bearish candle inside the zone, a wick that pokes above and closes back below, or a shift in short term structure as price stops making higher highs. Trigger fires. Entry on the next candle. Stop just above the zone. Target the recent low.

Why does this work as a learning template for a 500 dollar account? Because the entry, stop, and target are all defined before the trade. You do not have to make a decision in real time about where to exit. The chart already told you. You either get the move, in which case you bank a multiple of your risk, or the zone breaks, your stop fills, and the loss is bounded. Bounded losses are the only kind a small account can survive.

Recap: mitigation is when price returns to a zone, reacts, and continues the original direction. Entry on the reaction candle. Stop outside the zone. Target the prior high or low. The framework gives a small account defined risk and defined reward on every trade.