Market Structure Inducements ICT [TradinFinder] CHoch BOS Sweeps

9月18日

🔵Introduction

Market Structure is the foundation for identifying trends in the market, crucial in technical analysis and strategies like ICT and SMC. Understanding key concepts such as Break of Structure (BOS) and Change of Character (CHOCH) helps traders recognize critical shifts in the market. BOS, referring to a Market Structure Change (BMS), and CHOCH or Market Structure Shift (MSS) signal trend reversals in the market.

Additionally, the concept of Inducement, a vital tool in Smart Money strategies, allows traders to avoid price traps. Identifying valid pullback, valid inducement, POI, and Liquidity Grab helps traders find optimal entry and exit points and leverage Smart Money movements effectively.

Bullish Market Structure:




Bearish Market Structure:




🔵How to Use

The Market Structure indicator is designed to help traders better understand market structure and detect price traps. By using this indicator, you can identify the right entry and exit points based on structural changes in the market and avoid unprofitable trades. Below, we explain the key concepts and how to apply them in trading.

🟣Market Structure

Market Structure refers to the overall pattern of price movement in the market. Using this indicator, traders can identify uptrends and downtrends and make better trading decisions based on changes in market structure. The two key concepts here are Break of Structure (BOS) and Change of Character (CHOCH).


Change of Character (CHOCH): CHOCH occurs when the market shifts from an uptrend to a downtrend or vice versa. These changes typically indicate a broader trend reversal, and the indicator assists you in identifying them accurately.




Break of Structure (BOS): When the market breaks a key support or resistance level, it signals a change in market structure. This indicator helps you identify these breakouts in time and take advantage of trading opportunities.





🟣Inducement

Inducement refers to price traps set by Smart Money to trick retail traders into making the wrong trades. This indicator helps you recognize these traps and avoid unprofitable trades.

Valid Inducement: Valid Inducement refers to deliberately created price traps by major market players to gather liquidity from retail traders. Once the market has collected sufficient liquidity, it makes the real move, and professional traders use this moment to enter.




🟣Valid Pullback

A Valid Pullback refers to a temporary market retracement, indicating a price correction within the main trend. This concept is crucial in technical analysis as it helps traders enter trades at the right time and profit from the continuation of the trend. The Market Structure indicator can identify these valid retracements, allowing traders to enter trades with greater confidence.

🟣Point of Interest (POI)

Another important concept in market analysis is the Point of Interest (POI), referring to key price areas on the chart. POI includes zones where significant price movements are likely to occur. The Market Structure indicator helps you locate these key points and use them as entry signals for trades.

🟣Liquidity Grab

Liquidity Grab refers to a scenario where the market intentionally moves to areas where retail traders' stop losses are placed. The goal is to gather liquidity, allowing major players to execute trades at better prices. By using this indicator, you can spot these liquidity grabs and avoid falling into price traps.


🔵Setting

ChoCh Detector Period: The period of identifying the major market levels that occur when they break ChoCh.
BoS & Liquidity Detector Period: The period of identifying minor levels, which are used to identify BoS and Liquidity levels.
Inducement Detector Period: The period of identification of Inducement levels.
Fast Trend Detector: This feature will help you update the major market structure levels sooner.
Inducement Type Detector: Two modes "Sweeps" and "Total" can be used to identify the levels of Inducement. In "Sweeps" mode only Levels detected by touch shadow. In "Total" mode, all Levels are detected.



🔵Conclusion

In financial market analysis and forex trading, identifying Market Structure and Inducement is crucial. Market Structure helps you detect uptrends and downtrends, and understand Break of Structure (BOS) and Change of Character (CHOCH). The concept of Inducement also enables traders to spot Smart Money price traps and avoid unprofitable trades.

The Market Structure indicator is a powerful tool that, by analyzing the market structure and concepts like valid pullback and valid inducement, helps you make more precise trade entries. Additionally, by identifying POI and Liquidity Grab, the indicator gives you the ability to spot key market zones and use them to your advantage in trading.