Glossary
Inducement
LiquidityLevels Glossary
Inducement describes a minor swing high or low that gets broken specifically to draw in positioning — stop-losses, breakout entries — right before a larger move develops in the opposite direction. The word points at intent rather than mechanics: it's the same underlying idea as a liquidity sweep, but used to describe the smaller, earlier move that sets up a bigger one, not the sweep itself.
In practice, traders often flag inducement on a lower timeframe right before a higher-timeframe level reacts — a small break that looks like continuation, traps traders leaning that way, and then reverses hard as the larger move actually gets going. It's a sequencing concept: inducement happens first, the real move follows.
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