Mitigation Levels

Overview

The Mitigation Levels section provides a vertical column graph that displays the percentage of selected structures that retraced to key levels of the prior price leg. This helps traders understand how often market structure interacts with significant retracement zones.

Key Features

1. Retracement Level Breakdown

   • The graph displays six key retracement levels:

     • 38.2%

     • 50% (EQ - Equilibrium Level)

     • 61.8%

     • 78.6%

     • 88.6%

     • 100%+ (Price retraced the entire prior leg or beyond)

   • Each column represents the percentage of selected structures that reached that retracement level.

2. Highest Retracement Only Rule

   • Each structure is only counted in the highest retracement level it reached.

   • Example:

     • If a price leg retraced 61.8% of the previous leg, it will be counted only in the 61.8% column, not in the 50% or 38.2% columns.

   • The system rounds down when categorizing retracements:

     • Example: If a retracement reaches 60%, it is counted in the 50% column (EQ level), since it did not reach 61.8%.

Why This Data is Meaningful for Traders

1. Identifies Common Retracement Levels Where Structure Reacts

   • Shows which levels price tends to revisit most frequently before continuing in the dominant trend.

   • Helps traders refine expectations for pullbacks and potential entry points.

2. Confirms How Deep Market Structure Typically Retraces

   • If most structures reach at least 50% or deeper, traders can adjust their retracement-based strategies accordingly.

   • Understanding the frequency of deep vs. shallow pullbacks allows traders to adapt to market behavior.

3. Filters Out Noise by Focusing Only on the Most Significant Retracement

   • Ensures that each retracement is categorized at its highest valid level, avoiding misleading redundancy in the data.

   • Helps traders focus on the true depth of retracements rather than cumulative minor pullbacks.

Practical Use

• Helps traders set realistic retracement expectations based on historical structure behavior.

• Provides statistical backing for using specific retracement levels in trade setups.

• Highlights whether the market is favoring deep or shallow pullbacks, aiding trade execution decisions.

By quantifying how far structures typically retrace, this section allows traders to align their trade entries with historically significant pullback levels.