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What Is an Inducement in ICT Trading?

Radhey

In ICT terminology, inducement generally refers to a price movement or structure that may encourage traders to enter positions before price moves toward another liquidity area.

For example, a minor swing low may attract breakout sellers, while price later reverses and moves higher.

Traders study these structures to understand where liquidity may be resting.

However, not every minor swing is deliberately engineered to trap traders.

Remember: Focus on observable price behaviour rather than assuming market intent.

Do you identify inducement before looking for liquidity sweeps?

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