Inducement is a minor high or low that lures breakout or reversal traders into a position — providing the liquidity larger players need before driving price the intended way. It usually sits just before a key order block.
How traders use it
- It is the bait that funds the real move.
- Often a small swing before a stronger level.
- Recognising it helps avoid being the trapped liquidity.
See it in dtcharts
Mark order blocks, gaps and liquidity on the chart in the dtcharts terminal with the drawing tools and Smart Money module.