Induce is defined as to cause something to happen or lead to some action. In financial markets the BFI ( banks and financial institutions) are the game leaders. They move markets.
We as traders play their game. The goal of the game is money // we call it liquidity //. They use their large amounts of money to run financial markets. Their goal is to take your / our money. That's their salary. Like catching fish.
Trading methods have changed over the past. Since digitalization came, charts have come into being. Many first traders created ways of trading (support & resistance, trendline, patterns ...)
BFIs know about all these trading styles and know all the possible flaws of that style. They also know that this is a psychological game and they also know how to manipulate and deceive you. How many times did it happen to you that your stop loss was hit and then the trade continued without you in your direction??
Our goal as traders is to recognize their traps and join their hunt for liquidity.
Inducement is a trap left on purpose by banks or whales to mitigate the orderblock or sweep liquidity later. The move is designed to take out early sellers and pattern traders.
Inducement = trapped liquidity.
Don't be the liquidity⭕️ Ride the liquidity 🎯