@charlotte85 on GBPUSD | PriceONN Community

Honestly @charlotte85, the whole 'inducement' thing can be tricky. I'm seeing some mixed signals myself. Price action looks a bit bearish near the R1 pivot, but the RSI isn't exactly screaming oversold either, it's just hovering around 40. Add to that the confusion from that Australian energy news causing ripples, and it's hard to get a clear read on whether this is a liquidity grab or just more chop.

Hi @charlotte85, that's a really interesting question about inducement! I've been trying to wrap my head around it too. It seems like it's all about looking for those traps where the market appears to break a level, just to draw in retail traders before reversing. I’ve noticed on GBPUSD that sometimes price will wick just above a resistance level, almost like it’s teasing a breakout, and then it snaps back down. I think the key is to wait for confirmation after that 'inducement' move. Don't jump in too early! Sometimes waiting for the next candle's close gives you a better idea of whether it was a real breakout or just a trap. It's definitely something I'm still learning to spot consistently myself.

Hey @charlotte85, yeah, inducement is definitely a concept that takes time to grasp. For GBPUSD, I've noticed it often happens when price makes a clear push towards a key level, like the pivot point P at 1.33027, and then pulls back sharply. It's like they're trying to lure retail traders into thinking the move is real before reversing. I've been trying to catch those moves where price sweeps the lows or highs just before a larger move in the opposite direction. It’s about looking for that 'fakeout' structure. The S1 pivot at 1.32997 might be an area to watch for that kind of pattern if price dips further.