Inducement: The Trap Before The Move
A 1-minute lesson from the MarketPro academy, one of 22 in smart money concepts.
Inducement describes a small, obvious swing point placed in front of a more significant level, designed to draw in early entries or stop orders before the real move happens. Retail traders are naturally drawn to obvious-looking support, resistance, or minor swing highs and lows.
Inducement describes a small, obvious swing point placed in front of a more significant level, designed to draw in early entries or stop orders before the real move happens.
Why Inducement Matters
Retail traders are naturally drawn to obvious-looking support, resistance, or minor swing highs and lows. Smart money concepts suggest that price often taps these shallow levels first — triggering breakouts, stop losses, or premature entries — before reversing toward the more meaningful point of interest sitting just beyond it. The shallow level is the inducement; the deeper level is the actual target.
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Step 7 of 10 on Smart Money Concepts
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Not investment advice. Past performance is not indicative of future results.