INDUCEMENT: A simplified liquidity approach to taking high probability setups In this thread, you'll learn about what Inducement really is & how it can increase your win rate as a trader A thread 🧵
Most profitable Traders using SMC to trade the market understands Inducement and how it works, by this they always look out for inducement close to their point of interests to give their poi a higher probability of playing out. What then is this INDUCEMENT that they talk about?
INDUCEMENT is simply an internal range liquidity close to a point of interest, a point of interest is an area of value which can be your order block, fair value gap, etc.. The ideology behind inducement is to trick buyers/sellers to enter a trade too early thereby stopping them
out for a lower/upper POI depending on the trend. A valid inducement must take out the previous high/low that created it & must be close to point of interest. Without a POI it is just a mere buyside/sellside liquidity, but with a POI close to it we call it inducement.
INDUCEMENTS gives meaning & higher probability to your setups There are different ways that Inducement can be identified as inducement can be in any form: - trendline liquidity - equal lows - equal highs - session lows/highs - previous highs/lows etc.. Some examples below
Here's a scenario on GOLD $xauusd using the inducement + poi play, here you can see that the liquidity was swept before the point of interest was mitigated, some traders took positions on the liquidity zone and they were taken out. The liq. swept before the POI is the inducement.
Scenarios from $Eurusd & $Usdcad It's simple to identify but you need to pay attention to not pick the inducement as your poi, nobody is above mistakes, sometimes one can pick the inducement area as poi and get stopped out, so always be calm during your identification.
More scenarios from $Gbpusd and $Gbpjpy You cannot master the use of inducement over night, it takes consistent practice, follow the process and with time you'll get better at it!
To learn about this Structure Liquidity & Entry model which INDUCEMENT plays a vital role, visit this thread: 👇 https://x.com/lex_consults/sta...
To learn more about how FVGs works with INDUCEMENT, visit this thread 👇 https://x.com/lex_consults/sta...
I'm sure you learnt something from this thread, if yes, like & repost the first post so that others can learn too. Do well to follow me @lex_consults for more insightful trading contents, also join me on WhatsApp- use the link in my bio, send a DM and I'll save up immediately
Do follow these traders for great trading contents @Techriztm @Fairy_Trades @neehyeehwah @Starr_gael @AartTheTrader @Investor_ruthh @KelvinCassie3 @InvestorNnKay @Kelvin_Graph @Kelvintalent_ @Mona_Trades @TradeWithThanos @Web3_Dad @SDX_Trades @CryptoPlays_ @ronna256 & more