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Smart Money & ICT

Inducement

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Also calledIDM

An early, obvious level in front of the real point of interest that lures traders in too soon.

What it means

Their stops become liquidity that price takes on its way to the deeper zone. Many SMC traders wait for the inducement to be swept first.

In practice

Inducement explains why the first obvious level so often fails. A small pullback low just before a major zone attracts early buyers, and their stops sit right below it. Price then drops through, collects those stops and reaches the deeper zone.

Traders use it as a patience rule: when there is an untouched minor level in front of the zone they want, they wait for it to be taken first.

What to watch for

Deciding which level is the trap and which is the real one is only obvious afterwards. If the first level holds and price leaves, a trader waiting for the deeper zone has no trade.

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