Inducement
The bait before the zone
Inducement is a small, obvious level that tempts traders in early, right before price reaches the real zone. When price runs through that minor low, it collects the liquidity that fuels the move from the zone.
Test yourself
Price made a small low above the demand zone, broke it, then tapped the zone. What was that small low?
Inducement: liquidity that pulled price into the zoneThe minor low baited early buyers; their stops fuelled the move into the zone.
Why do patient traders wait for inducement to be taken?
Entering before it is taken often means getting stopped out by the sweepEntering at the bait level means your stop becomes the liquidity.
Inducement usually sits…
Just before the real point of interestIt is the obvious level on the way to the zone.
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