Inducement After BOS in ICT (Trap Explained): 3 Steps + Example

1. What is a Break of Structure (BOS) in ICT?

In ICT (Inner Circle Trader) theory, a Break of Structure (BOS) happens when price breaks a previous swing high or low, signaling a shift in market direction or continuation of a trend.

For example:

• In an uptrend, a BOS occurs when price breaks above the previous high
• In a downtrend, a BOS occurs when price breaks below the previous low

A BOS is one of the first signs Smart Money is pushing price in a new direction.

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2. What is Inducement in ICT?

Inducement is a tactic used by Smart Money to lure retail traders into bad positions just before a major move.

It creates a false sense of opportunity — for example, a small move that looks like the real entry — so that retail traders jump in and place their stop-losses in predictable spots.

These stop-losses become liquidity pools, which institutions later target and sweep.

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3. Inducement After BOS in ICT: The Trap

After a BOS, price doesn’t always move straight toward your target.

Instead, it often pulls back to induce traders into early trades — this is Inducement After BOS.

Here’s how it works:

1. Price breaks structure
2. Retail traders spot the BOS and chase the trend
3. Smart Money creates a “clean” inducement level
4. Price reverses short-term to grab that liquidity before the real move begins

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4. Example: Inducement After BOS in a Bullish Trend in ICT

Let’s say GBP/USD is in an uptrend.

1. Price forms a high at 1.2720
2. It pulls back to 1.2680, then breaks above 1.2720 — this is the BOS
3. Retail traders see the breakout and enter long at 1.2730 with stop-losses at 1.2700
4. Price comes back down to 1.2700, hits the stop-losses (this is the inducement)
5. After the sweep, price rallies strongly to 1.2780

What happened?

• Smart Money used the BOS to attract buyers
• Then they created a small dip to trigger their stop-losses (liquidity)
• Once the liquidity was captured, they pushed price in the real direction

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5. How to Trade Inducement After BOS the Smart Way in ICT

To avoid getting trapped:

• Wait after BOS — don’t rush into the first candle
• Look for inducement zones — clean equal lows or small pullbacks
• Watch for signs of liquidity sweep like long wicks, break of short-term structures, or Fair Value Gaps (FVGs)

Only enter once you see the inducement has been cleared and Smart Money is ready to move.

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6. Why Inducement After Break of Structure (BOS) Matters in ICT

If you trade immediately after a BOS, without waiting for inducement to play out, you’ll often get stopped out.

Understanding inducement after BOS:

• Improves your entries
• Helps you avoid traps
• Aligns you with Smart Money rather than retail

It’s not just about spotting the trend — it’s about timing it right.

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7. Final Thoughts

Inducement after BOS is one of the most subtle but powerful traps in the market.

Smart Money knows where traders will enter and where they place stops. They break structure, induce entries, and then sweep liquidity before continuing.

If you master this pattern, you’ll start trading with the institutions — not against them.

Would you like a chart example to visualize this better?