Smart Money Concepts
Oct 26, 2026 6 min read
Inducement in Trading: How Smart Money Baits Early Entries, and How to Trade After It
Inducement in trading is the small, obvious level that sits in front of the real one: a minor pullback low just above the order block, a tidy trend line, a first touch of a zone. Early entries go there, their stops go just beyond it, and the move that takes those stops is what fills the real entry. This guide explains the mechanics, the three places inducement forms, how to tell the bait from the level, and a rule set for entering after the inducement is taken rather than at it.
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