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Inducement - what it really is

Inducement is the building of manipulative liquidity before an area of buying/selling orders. This acts as
fuel for the ‘real’ move to be made. It is our job to spot it before it happens. So many people lose in trading
because they are the ones getting induced, which is fuel for the institutions!

Inducement Amount Taken = Distance of Movement (from OB mitigation) x Momentum

Eg, If momentum is very bearish, less inducement is needed to be swept to make a medium/large sell move.

If momentum is very bullish, a lot of inducement is needed to be swept to make a medium/large sell move.

Because we are human, we will never know exactly how much inducement is needed to be able to make perfect distance entries. That's
why it is important to partial (or SL at BE) and accept losses and evaluate them.

How can we advantage from this formula?

- If we can evaluate the momentum of price, we can attain an understanding of how much we need to manipulate price. We always
need to see a form of manipulation before we take a trade, whether it is a reversal or continuation.
- Momentum helps us to identify HTF influence. Everything is a product of what happens to the left.
- Acknowledges the predetermination of the market which helps us identify which levels price is trying to target
If momentum is very bearish, less inducement is
needed to be swept to make a medium/large sell
move.
If momentum is very bullish, a lot of inducement is
needed to be swept to make a medium/large sell
move.
If momentum is very bullish, a lot of inducement is
needed to be swept to make a medium/large sell
move.
Putting it all together…
4 CounterParts of a Setup - Orderblock

Before inducement is taken for price to raid then reverse rapidly, we will be building this short of a level of
resting orders. There are some advanced ways that validate a mitigation of an orderblock. We do not
always need to mitigate the last candle before the impulsive move.

A great way to understand where we will mitigate an orderblock is where the inducement is positioned.
Price will mitigate something proximal to sweeping the mitigation-inducement.

How can we spot these zones?

4 CounterParts of a Setup - Inducement

Inducement - What traps are we setting to capture the masses! Think like a bank!
4 CounterParts of a Setup - Build-Up Leg

Our build-up leg is what price creates before mitigating our OB and sweeping it’s inducement. Price will
either create continuational structure, or create weak build up structure to take out… and of course the
Vector Level which tells us exactly what will happen.
4 CounterParts of a Setup - Targets

Targeting your trades is where a lot of people go wrong, but the objectivity in the market allows us to pay
ourselves at certain intervals.

The main rule of thumb is: trade until the next potential reversal-inducement level of an active zone.

We can decipher inducement levels based on their interaction and what we enter after sweeping them.
This is Minor, Medium and Major. Minor and Medium produce pullbacks rather than reversals, so we can
hold our trade through these. There are specifics to these strengths that we go over in the Premium
Lounge.

We should partial at levels of uncertainty because we won’t always be right 100% of the time.
4 CounterParts of a Setup - Secondary Elements

1. Time X Price - Price only manipulates at certain points of time. Most often London / NY Open
(+30m) and our MMM times.
2. Momentum - momentum is formed from having a fractal HTF - LTF nature. This can help us
decipher targets, inducement needed to take out, HTF influence on current PA and shifts
(reversals)
3. Inducement Strength (Minor Medium Major)
4. Daily Cycle factors

And more! I can’t give away absolutely everything, but all the other needed info is recorded in our
Premium Lounge and within the full strategy eBook.

People sell this kind of info for ridiculous pricing, but if we can have a tight trading group and help each
other, we can all benefit.
 Inducement

Bullish Setup 1 (Reversal) Needed - 2

Phases
 Inducement

Bullish Setup 2 (IPB / Continuation) Needed - 1

Phase (TF
Exception)
 Inducement

Bearish Setup 1 (Reversal) Needed - 2

Phases
 Inducement

Bearish Setup 1 (IPB / Continuation) Needed - 1

Phase (TF
Exception)