Glossary / Market structure

Inducement

An educational concept. Not a signal, not a strategy, and not a trade Josh has taken.

Stepped white and ice-blue blocks forming a rising landscape, an unlabeled picture of market structure.
Illustration of the idea, not a market chart and not a result.

A minor, obvious swing that forms just before price reaches a bigger zone. Early entries at that swing place stops that later become fuel when price runs them into the real zone.

How traders use it: Some traders wait for the inducement to be swept before trusting a zone.

Common mistake: Seeing inducement everywhere after the fact. Define it before the move.

Related: Liquidity sweep · Order block · Liquidity (in structure trading)

See this term in the full glossary · All terms

Concepts only. Education only, not financial advice. No pattern on this site has a published win rate.