Inducement and Sweep Indicator for MT5 Download - Free - [Trading Finder]

The Liquidity Hunt Indicator in Market Structure (MSIS) identifies price-inducing movements in the market, such as Support or Resistance. This indicator detects points of deception or price traps.

When traders make poor decisions based on false signals, these movements often lead them into traps, resulting in financial losses.

Indicator Table

Liquidity Hunt Indicator in an Uptrend

In an uptrend, the Liquidity Hunt Indicator identifies key areas such as Change of Character (CHoCH), Inducement Levels (IDM), and Break of Structure (BOS).

On the 4-hour price chart of the GBP/USD currency pair, the price resumes its uptrend after the liquidity hunt phase. These fluctuations enable traders to analyze price movements to determine suitable entry or exit points.

Liquidity Hunt Indicator in a Downtrend

On the USD/JPY price chart, after a Change of Character (CHoCH), the price moves toward a liquidity hunt in a downtrend. This movement can create false stimuli for many traders who mistakenly enter short positions.

Following these fluctuations and liquidity accumulation, the price returns to its previous trend.

Indicator Settings

• Color theme of chart and object: Chart background color;
• Candles to check: Number of return candles set to 1000;
• Swing CHoCH: Calculated Change of Character equals 30 candles to the left and right;
• Swing BOS: Calculated break equals 1;
• Swing inducement: Calculated inducement equals 3.

Conclusion

The Market Structure and Liquidity Hunt (MSIS) indicator helps traders identify price movements that lead to liquidity accumulation. This indicator provides a comprehensive insight into trading opportunities by highlighting key points like Change of Character, Break of Structure and Inducement Zones.