Chart geometry and zone terminology

Order Block vs FVG vs Mitigation Block: Compare the Evidence

An order block labels a selected candle or price zone; a fair value gap describes non-overlap between the first and third candles of a three-bar pattern. Mitigation describes how a model treats a return or breach, and “mitigation block” needs an explicit definition. None of these labels by itself reveals institutional inventory.

See the decision guide

Four labels, different objects

Keep geometry, lifecycle events and trading hypotheses separate. The table uses an explicit analytical convention; it does not claim a single authoritative definition for every SMC indicator.

LabelObject to recordAdditional choice needed
Order blockSelected candle range and the event that qualified itFull wick range versus body; structural-break threshold
Fair value gapInterval between bar 1 and bar 3Strict inequality, minimum width and completed-bar requirement
MitigationA later interaction with an existing zoneFirst touch, midpoint, full traversal or closing breach
Mitigation blockA named failure or return setup in a particular methodIts swing sequence and whether a prior sweep is excluded
Breaker blockPreviously active zone after invalidationWhether to wait for a retest or require a prior sweep

Calculate an FVG without inventing order-flow evidence

For three completed candles numbered 1, 2 and 3, this example defines a bullish FVG when low(3) > high(1), with bounds high(1) to low(3). A bearish FVG requires high(3) < low(1). Equal values produce zero width and do not qualify. This is a chart-range condition: it does not mean the middle candle contained no trades or that only buyers were filled.

Hypothetical valuesResultWidth
High(1)=100; low(3)=102Bullish interval 100–1022 price units
Low(1)=105; high(3)=103Bearish interval 103–1052 price units
High(1)=100; low(3)=100No bullish gap under the strict rule0

Why “mitigation” needs a definition

LuxAlgo publishes close, wick and average-level mitigation choices for its zones. A rule based on touching the near edge will mark an event earlier than a rule requiring a close beyond the far edge. A chart that removes a rectangle can therefore disagree with another chart without either using different prices. When comparing a mitigation-block method that excludes a prior swing sweep with a breaker method that requires one, state those conditions as your chosen taxonomy. The labels do not establish that one has higher conviction or that trapped traders must exit at breakeven. Record the swing price, confirmation time and exact crossing test so another person can reproduce the classification.

Overlap is geometry, not independent confirmation

Suppose an order-block zone is 99–102 and a bullish FVG is 101–103. Their shared interval is 101–102, width 1. The intersection is found by taking the larger lower bound and smaller upper bound. If those values are equal, the zones only touch; if the lower result exceeds the upper result, there is no overlap. This example does not imply that two signals double the evidence. Both may be derived from the same price move. Compare an order-block-only rule with the same rule plus the overlap filter on held-out data, including how many opportunities the filter removes.

A useful event log for comparing tools

Keep the same fields for every detected zone, including those that fail.

  • Store symbol, exchange feed, timeframe and timezone; different candles can create different gaps.
  • For each zone, save the bounds, origin time and first detection time. A retrospectively drawn pivot was not necessarily known at its origin.
  • Record gap formation only after candle 3 is complete if that is the chosen rule. Intrabar highs and lows can change.
  • Track first touch, midpoint reach, full traversal and invalidation separately rather than using one ambiguous “filled” flag.
  • Record expiry and overlapping-zone selection so deleted historical rectangles do not silently disappear from the sample.

What to ask a coding tool to implement

Ask Pineify for a script with separate zone arrays and explicit creation, touch and invalidation events. Supply your definitions instead of asking for “the best SMC strategy.” Review the generated source and use TradingView to check timing and behavior. Keep simulated fills and transaction costs separate from the drawing logic; a highlighted gap is not an order.

Where Pineify fits

Pineify Pine Script AI Coding Agent

Describe explicit zone and confirmation rules, then inspect the generated Pine Script and test its behavior in TradingView. Access follows the current Pineify plan.

Explore the coding workflow

Frequently asked questions

Educational pattern definitions and hypothetical examples, not observed trading results. Validate rules, data availability, costs and execution assumptions before relying on a strategy.

Sources and verification