Trading Inducement: Why Early Buyers Get Stopped Out
Ever get stopped out, then watch price run straight to a target?
Well, here's why. Most traders see price sweep liquidity to
the downside.
They've got targets above, and they jump straight into buys.
Then price drops one more time, takes them out, then runs to a
target. They weren't wrong, they were early.
They became the early buyers price needed to clear.
Before you enter, look for the inducement of early buyers.
That's price breaking structure to pull traders in.
If that inducement already formed before the sweep of liquidity, then you're
good. You can look for your entry. If it hasn't happened yet, don't rush
in. Expect an inducement first, then the real move.
Same direction, same target, completely different results.
Don't be the inducement. Wait for it.
End of transcript · 130 words