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Rejection Block and Mitigation Block: ICT's Lesser-Known PD Array Tools

Order Blocks, Fair Value Gaps, and Breaker Blocks get most of the attention. But the ICT PD array toolkit also includes two supporting tools — Rejection Blocks and Mitigation Blocks — that complement those primary entries when you know what to look for.

The Inner Circle Traders

Updated July 2026

8 min read

Cluster: PD Array Tools

Key Takeaways

A Rejection Block is a candle with an unusually long wick showing strong rejection from a price level — the wick zone marks the potential retest entry area
A Mitigation Block is an Order Block that has been partially filled once but is not yet invalidated — it remains valid for a second-touch entry
Both are lesser-known members of the PD array toolkit, best used as supporting confluence rather than standalone primary entry signals
A Mitigation Block differs critically from a Breaker Block: the OB is still acting in its original direction, not flipped
Rejection Blocks are most common at swing highs and lows where a single candle shows unmistakable institutional rejection

This article covers the two lesser-known members of the ICT PD array toolkit — tools that are not as widely discussed as Order Blocks or Fair Value Gaps, but that appear regularly on charts and can meaningfully improve setup quality when recognised.

What is a Rejection Block?

A Rejection Block is a candle with an unusually long wick relative to its body, showing that price moved sharply into a level but was forcefully pushed back by the market. The wick itself represents a price range that was tested and then decisively rejected — suggesting that institutional participants were active at that level and resisted the move.

Simple definition

A Rejection Block = a candle where the wick is much longer than the body, signalling strong institutional rejection at the wick’s extreme. The zone from the wick tip to the candle’s close marks the area to watch on a return visit.

Rejection Blocks are not a separate concept from Order Blocks so much as a variant: where an Order Block marks the last opposing candle before a move, a Rejection Block marks the candle where that opposition was most dramatically visible as a wick, rather than as a clean directional body candle.

Figure 1 — A Rejection Block candle: very long upper wick, small body near the bottom of the wick range, with the rejection zone marked for the potential retest entry.

How to Trade a Rejection Block

The zone of interest for a Rejection Block entry is the range from the wick’s tip down to the candle’s close. This is the area that was entered and then rejected — and where price is likely to encounter resistance (or support, for a long wick below) on a return visit.

Entry: Taken when price retests into the rejection zone from the original direction — entering the range that was so aggressively rejected the first time.

Stop loss: Beyond the wick’s tip — outside the full extent of the rejection, since if price moves through that level, the zone has clearly failed.

Target: The nearest liquidity draw in the expected direction. See our guide to Liquidity Sweeps for how to identify these targets.

What is a Mitigation Block?

A Mitigation Block is an Order Block that price has returned to and interacted with once — testing the zone — but has not broken through or invalidated. The Order Block has been “mitigated” (partially filled), but it still holds. On a second return to that zone, the Mitigation Block acts as a second-chance entry opportunity in the original direction of the Order Block.

Simple definition

A Mitigation Block = an Order Block that has been touched once and continued in the original direction without breaking. The zone remains valid for a potential second entry.

This distinguishes Mitigation Blocks from two similar concepts: a fresh, untouched Order Block (not yet mitigated at all) and a Breaker Block (an Order Block that was fully broken through with displacement and has since flipped direction).

Mitigation Block vs Breaker Block — Key Distinction

This is the most common source of confusion when studying the PD array toolkit, and it deserves a direct, clear comparison — particularly since this question was already raised in our guide to ICT Breaker Blocks.

Figure 2 — Mitigation Block (left): the OB is tested once, price bounces, and the zone remains valid. Breaker Block (right): the OB is broken with displacement, zone flips direction.

Feature	Mitigation Block	Breaker Block
What has happened	OB touched once and price bounced	OB broken through with displacement and a CHoCH
Zone direction	Still acting in its ORIGINAL direction	Now acting in the OPPOSITE direction
Confirmation needed	None — zone is still intact	CHoCH required to confirm the flip
Entry type	Second-chance entry in the original direction	Counter-entry on the retest of the flipped zone
Invalidation	Price breaks through the zone entirely	Price blows through the retest without any reaction

The simplest test: has the Order Block been broken with a confirmed CHoCH? If yes, it is a Breaker Block. If it was only touched and continued, it is a Mitigation Block. If it has never been touched at all, it is a fresh Order Block.

When to Use Each Tool

Rejection Blocks are most useful as supporting evidence when a single candle shows dramatically outsized institutional rejection at a key level. They work best when a longer wick aligns with a broader swing point, a liquidity zone, or an Order Block in the same area — the wick makes the rejection visible on a single candle, rather than requiring the swing-level analysis an OB demands.

Mitigation Blocks are most useful as second-chance entry zones for traders who missed the first touch of an Order Block. If you identified a valid OB, price returned to it, and you missed the entry — but price bounced without invalidating the zone — the zone is now a Mitigation Block, and a second retest is a legitimate entry opportunity with the zone’s original logic still intact. Link both to the broader PD array context: see ICT PD Array for how these tools fit the full premium/discount framework.

Frequently Asked Questions

Identifying Rejection Blocks in Real Time

A rejection block is a candle (or series of candles) that shows strong rejection at a key level — characterised by a long wick in the direction of the rejected move and a small body closing back away from the extreme. The long wick is the mechanical evidence of the rejection: price moved aggressively in one direction, found institutional resistance, and reversed sharply within the same candle.

In real time, rejection blocks are easiest to spot on the 15M or 1H chart at known liquidity levels. When price approaches a prior week high (BSL level) and produces a 15M candle with a wick above the weekly high that closes back below it — that wick candle is the rejection block. The high of the wick is the swept BSL; the body close is the rejection confirmation. The entry zone is the body of the rejection candle, with a stop above the wick high.

The body-to-wick ratio matters. A candle with a very small body and a very long wick is a stronger rejection block than one with a body nearly as large as the wick. The small body shows that even though price reached the extreme, it could not hold there for any meaningful time — institutional selling overwhelmed the breakout buyers almost immediately. A large body with a short wick is a weaker rejection, closer to a standard displacement candle than a true rejection block.

How a Mitigation Block Forms and Why It Works

A mitigation block forms from a failed swing point — specifically, a swing high or swing low where an institutional position was built, and where price later reversed through that position, leaving those original orders at a loss. When price returns to that level, the institution “mitigates” (closes at break-even or reduces) the losing position — this institutional activity at the mitigation price creates the reaction you see on the chart.

The practical formation sequence for a bearish mitigation block: price makes a swing high (institutional shorts placed here). Price then rallies above that swing high — the institutional short is now losing money. Price eventually reverses and comes back down, returning to the original swing high level. At that level, the institution closes the losing short position (mitigation), creating a burst of buying activity that temporarily pushes price higher. This buying reaction at the mitigation level is the entry signal for new shorts — the mitigation buying is temporary and price continues lower after the mitigation is complete.

The key distinction from a breaker block: a breaker block forms when the original swing high is taken out decisively with displacement and the position inverts from bullish to bearish intent. A mitigation block forms at the original swing high level itself — the position is being reduced, not inverted. Mitigation blocks produce shallower, shorter reactions than breaker blocks because they are reducing a position rather than establishing a new one in the opposite direction.

Watch: Rejection Block and Mitigation Block: ICT's Lesser-Known PD Array Tools

Original ICT teaching on this concept from the Inner Circle Trader YouTube channel.

What is a rejection block?+

A rejection block is a candle with an unusually long wick relative to its body, showing strong institutional rejection at a price level. The zone from the wick's extreme to the candle's close marks the area to watch on a return visit, where similar rejection is expected.

What is a mitigation block?+

A mitigation block is an Order Block that price has already touched once and bounced from, without fully invalidating it. The zone remains valid for a second entry in the original direction, since only the first layer of orders was filled on the initial touch.

What is the difference between a mitigation block and a breaker block?+

A Mitigation Block is an Order Block that has been touched once but is still acting in its original direction — the zone remains intact. A Breaker Block is an Order Block that has been broken through with displacement and a CHoCH, causing it to flip and now act in the opposite direction. The defining test is whether the OB was broken with a confirmed CHoCH — if yes, Breaker Block; if it only touched and bounced, Mitigation Block.

Is a rejection block the same as an order block?+

Not exactly. An Order Block is the last opposing candle before a significant displacement move — typically identified by its candle body. A Rejection Block is identified by its wick rather than its body, marking where price moved sharply into a level and was pushed back. A candle can show characteristics of both, but they are conceptually distinct tools within the PD array toolkit.

Can mitigation blocks be traded as entries?+

Yes. A Mitigation Block is a legitimate entry zone — it represents a second opportunity to enter a trade at an Order Block that was already validated by its first touch and bounce. It is a second-chance entry rather than a first-chance one, and like all PD array entries, works best with daily bias and a clear liquidity target providing context.

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Contents

—What is a Rejection Block?
—How to Trade a Rejection Block
—What is a Mitigation Block?
—Mitigation vs Breaker Block
—When to Use Each Tool
—Watch: Live Examples
—Frequently Asked Questions
—Test Your Knowledge

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