![smc.png](https://cdn.steemitimages.com/DQmXoUozhSAih2Cc8oRYQGNDasG84pC7y6Hg76bVNSmcrxK/smc.png) _{*Edit with Canva*} Hi all! It's been a long time since I wrote on this platform because there were several things in my life that made my concentration drain quite a lot. However, I will greet all my friends in this article by reviewing one of the important continuations of the *market structure series* that I reviewed some time ago. Without further ado, I will review a crucial topic in discussing market structure, namely induction. And let's review, **inducement** is one of the most important parts of *market structure*.

| What is an inducement? | | ------------ |

In my understanding, an indemnity is a pullback that is in the *market structure* that makes prices continue their trend movement. The condition for the formation of an *inducement* is the presence of a *pullback*. _{So what is a pullback, and what is its important role related to inducement?} > A pullback is a small wave movement that forms within a market movement. > When the pullback is successfully penetrated, either up or down, the market will usually move again according to the ongoing major trend. ![image.png](https://cdn.steemitimages.com/DQmRNTJ1h1jDe5QhihF7MTD9tsPA7MPPKHk5iNbpwJYR7Rv/image.png) _{Screenshot from My TradingView Account} _{In this picture, we see that the inducement is taken with a penetrated wick.
Why is this called an inducement? because this is a pullback on the previous movement, and to continue the price trend, you must take an inducement.} In the picture above, you can see that there is a wave of movement called a *pullback*. The pullback breaks down slightly, and the price immediately rises and forms a new *break in structure*. So, when a pullback breaks down, the major trend is bullish, and if a pullback breaks upwards, then the trend is bearish.

| no inducement, no trading setup. | | ------------ |

Well, this is perhaps a crucial statement that you may have heard. ***There is no inducement, no trading plan setup***. Take a look at the picture below. I made a short trading plan on **Litecoin**. ![image.png](https://cdn.steemitimages.com/DQmembwHxddS33QhKneAK1zX3BoqCMF1Sf5Cvxwg6oCzXBk/image.png) _{Screenshot from My TradingView Account} It can be seen that there has been a *pullback*, and then it has been formed by a prospective *inducement*. So, if the high area is broken, then the inducement is valid and the price enters the *supply area*. The hope is that the price will continue to fall and break the previous low.

| So how do you see a valid inducement? | | ------------ |

The conditions for a valid inducement, as I said above, are that you must take a valid *pullback* area. If you find a case like the one below, there are 3 area boxes that I marked as *pullbacks*, which will later become *inducements*. ![image.png](https://cdn.steemitimages.com/DQmaAUTCr2ssYcKQYvUUq7RE4CFAfxoWWCSeGhCfHWTB9eH/image.png) _{Screenshot from My TradingView Account} On the first pullback, the price did not take the pullback and continued rising. Then we can conclude that the inducement has failed, and the inducement moves to the *second pullback*. However, we can see that the price failed to take a second pullback and continued to rise again. At this point, we see that no valid inducement has been formed. So, on the third pullback, the price corrected, *took the pullback, and became a valid inducement*. and you can see the price go up. _{What you need to understand is that the inducement can move if it does not meet the requirements, that is, if it is penetrated.}

| Conclusion
| | ------------ |

By knowing valid inducements and the formation of inducements, we can see the market in a mechanical structure or according to standard rules. This will give us stronger confirmation in seeing the market in more detail. _{Hopefully this review will be useful for all my friends. If there are things you want to ask about this topic, please comment. You can comment below.} _{See you in the next series market structure.}

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