⏪Inducement

ICT Concepts

Within a larger trend, there are almost always counter-trend moves. These counter-trend moves are the results of lower time frame liquidity hunting. The price will bounce or get rejected and then will target a previous short-term high or low before continuing in the same direction as the longer-term trend. Inducement is specifically the targeting of these short-term highs or lows as areas where stops might be placed. (Stop loss hunting)

Inducement

As we know, liquidity lies where an influx of stops are located, and once those stops are taken out, the price can continue in the direction it was previously going. For traders who are used to utilizing chart patterns, Inducement can be seen in the formation of bull and bear flags.

Reference: https://trendspider.com/blog/ict-basics-a-beginners-guide/