Market Structure Inducements ICT Indicator TradingView - Free - [Tradingfinder]

The Market Structure Inducements Indicator is developed based on Market Structure concepts from the ICT (Inner Circle Trader) trading style.

This indicator draws market structures using color-coded lines on the chart, including Change of Character (CHoCH), Break of Structure (BOS), and Liquidity Sweeps.

By combining these three elements, traders can easily identify trend reversals and false breakouts.

Indicator Specifications

Bullish Trend Conditions

Analysis of the Cardano (ADA) 15-minute price chart reveals the performance of this indicator during an uptrend.

After a CHoCH, several Liquidity Sweeps occur, yet the price continues its upward trend.

Finally, the indicator uses blue dashed lines to mark a BOS, indicating the continuation of the bullish trend.

Bearish Trend Conditions

The 1-hour price chart of the USD/JPY currency pair shows how the indicator performs during a bearish trend.

After a Liquidity Sweep, the market shifts to a downtrend. The CHoCH confirms the transition from bullish to bearish.

Successive BOS formations highlight the strength and continuation of the bearish trend.

Indicator Settings

• ChoCh Detector Period: Defines the period for detecting a Change of Character, set to 27;
• BoS & Liquidity Detector Period: Sets the detection period for BOS and Liquidity Levels equal to 1;
• Inducement Detector Period: Determines the period for identifying inducement zones, set to 3;
• Fast Trend Detector: Automatically detects rapid trends;
• Inducement Type Detector: Defines the type of inducement zones (e.g., Sweeps);
• Show ChoCh Level: Displays CHoCH levels on the chart;
• Bull / Bear Colors: Sets the colors for CHoCH zones;
• ChoCh Label Size: Specifies the size of CHoCH labels;
• Show BoS & Liquidity Level: Displays BOS and Liquidity Levels;
• Bull / Bear / LQDY Colors: Configures the colors for BOS and Liquidity Levels;
• BoS & LQDY Label Size: Adjusts label sizes for BOS and Liquidity Levels;
• Show Inducement Level: Enables inducement level display;
• Inducement Label Size: Sets the size of inducement labels.

Conclusion

The Market Structure Inducements Indicator is an advanced tool for analyzing market structure and identifying trading opportunities based on the ICT trading style.

By providing three key price movement structures, this indicator simplifies trend analysis and improves the accuracy of future price movement predictions.