indicator · on price · open source
Inducement Detector
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About
Inducement Detector flags a small retracement into a fresh order block — the 'bait' smart money uses to flush out the before the real move.
- Detects a small counter-trend move after a BOS in the opposite direction.
- Marks the setup with a circle on the bar where the inducement completes.
- Wait for price to leave the inducement zone with momentum.
Source code
//@version=5
indicator("Inducement Detector", overlay=true)
swing = input.int(5, "Swing Length", minval=2, maxval=50)
ph = ta.pivothigh(high, swing, swing)
pl = ta.pivotlow(low, swing, swing)
var float lastPh = na
var float lastPl = na
if not na(ph)
lastPh := ph
if not na(pl)
lastPl := pl
bosUp = high > lastPh
bosDn = low < lastPl
// inducement: small retrace after opposite BOS
indBull = bosUp and close < open and (high - close) < (high - low) * 0.4
indBear = bosDn and close > open and (close - low) < (high - low) * 0.4
plotshape(indBull and not indBull[1], "Inducement Buy", style=shape.circle, location=location.belowbar, color=color.lime, text="IND")
plotshape(indBear and not indBear[1], "Inducement Sell", style=shape.circle, location=location.abovebar, color=color.maroon, text="IND")
alertcondition(indBull and not indBull[1], "Bullish inducement", "Bullish inducement setup")
alertcondition(indBear and not indBear[1], "Bearish inducement", "Bearish inducement setup")
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