ICT Inducement (IDM) Explained

What is Inducement in ICT?

A minor swing or apparent opportunity that may encourage traders to enter early, leaving liquidity for price to take before reaching its intended objective.

Definition of Inducement

A local liquidity point regarded in a particular ICT dealing-range narrative as inducement before the main draw.

How to identify Inducement

First define the broader dealing range and likely draw; then identify a smaller internal swing that forms before the target. The label is contextual, not mechanically certain.

Bullish Inducement example

a minor low is taken before price rallies toward a larger high.

Bearish Inducement example

a minor high is taken before price declines toward a larger low.

Inducement chart examples

Practical trading example

In a bullish range, mark a small higher low below current price; price dips through it, then displaces upward toward external highs.

Common mistakes and important notes

Do not label every stop-out as inducement after the fact. It is a narrative hypothesis and can be subjective.

Related ICT concepts

Part of Liquidity Concepts. New to ICT? Start with the beginner guide.