Inducement is a trap before an area of supply or demand.
Price will usually lure impatient buyers/sellers into the market before the zone is met to create liquidity.
Once the impatient traders get trap[ped and stopped out, the true move begins.
This just goes to show the importance of sitting on your hands!
Traders, if you have your own opinion about this idea, write in the comments section, I always reply. 💬
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May I know at what kind of situations inducement can happen?
Olufem
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@Susanhninn i guess it just happens to trap impatient traders to make the game difficult for some and interesting for few and most importantly to provide liquidity to the market 😁
sanjuiisrlko
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Hello sir if any BOS which has a inducement….is that BOS POI fail ??
Olufem
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@sanjuiisrlko it might likely not be a full body BOS, for example if it's an uptrend, if it is meant to an inducement, you will notice that it won't be able to break the previous high before it retrace to the OB. The same thing for a downtrend, it won't break the previous low before it retraces back to the supply zone.