Inducement in ICT & SMC; Forex liquidity traps to hunt retail traders

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  • Math

  • High School

  • 12th grade

  • Calculus and Advanced Math Concepts

  • English

Author's Instructions

In Smart Money and ICT trading StyleInducement Levels are seen as liquidity traps designed to hunt retail traders' stop-losses. Many new traders enter trades at these levels, believing they are optimal entry points.

However, the price moves against them triggers their stop-losses, and then returns to the intended direction. This is why these zones are called Inducement Levels (Liquidity Inducement).

Due to the high volatility of the Forex market, this concept is observed more frequently in Forex trading.