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Understanding Inducement in Trading

Inducement refers to market tactics that entice retail traders into positions, allowing their stop losses to be used as liquidity. It often occurs near weak order blocks, fake fair value gaps, and support/resistance levels, typically involving specific candle patterns like hammers and dojis. The document illustrates various scenarios on charts where inducement leads to subsequent market movements, highlighting the importance of understanding these patterns for trading strategies.

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muhammad1601066
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130 views3 pages

Understanding Inducement in Trading

Inducement refers to market tactics that entice retail traders into positions, allowing their stop losses to be used as liquidity. It often occurs near weak order blocks, fake fair value gaps, and support/resistance levels, typically involving specific candle patterns like hammers and dojis. The document illustrates various scenarios on charts where inducement leads to subsequent market movements, highlighting the importance of understanding these patterns for trading strategies.

Uploaded by

muhammad1601066
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Inducement = Market ka intentional move jisse retail traders ko entry ke liye fasaya jata hai,

taake unka stop loss liquidity ke tor par use ho sake.

📌 Inducement mostly:

 Weak OBs

 Fake FVG fills

 Support/resistance lines

 Weak rejection candles (pin bar, hammer)


ke near hoti hai.

Weak OB

Hammer candle bani hai, retail


traders ko entry me phassane
ke lye. Upper OB hai, OB se
rejection milee,hammer
candle ke saath bullish candle
ko break kya, inducement
complete ho gye, phir bearish
move hai.
Strong bullish candle ne Liquidity targe
ki hai aur EQH ke neeche closing [Link]
ke baad hammer candle bani, jis ne
retail trader ko phassya hai, ke wo buy ki
entry le, is ke baad small bearish candle
bani hai, ye low institutional candle hai,
is ki rejection bohot weak hai, No real
bearish BOS hai. is ke final rejection
candle bani hai,jis ne SL hunt kye aur
phir bearish me move ho gye.

Doji candle ne
weak inducement
dee, os ke baad
strong rejection
mille, strong
rejection downside
ki confirmation hai.
30m ka OB hai, price akk dafa
rejection de chuka hai, jab price
dubara os OB me aye gee to
inducement show kare gee.

Ye one hour ka chart hai, strong bullish


candle ne liquidity target ki ha. Os ke baad
doji candle bani hai, jis ne OB se bahir ja
kar sweep kia hai, bullish candle ki
inducement complete ho gye hai os ke
baad rejection ke saath red candle bani
hai, ye sell ki confirmation hai, magar time
17:00 baje ka tha, jis ki wahja se market
me liquidity bohot kaam tha, rejection
candle ke baad bullish doji candle bani jis
ki closing OB ke ander hai,ye pullback nahi
hai,ye OB ke ander close hai, agar ye
candle inducement wali candle ki upper ja
kar closie hoti to phir bullish candle
consider ki jati.

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