You’ll stop getting caught in unnecessary stop losses when you understand the difference between Engineered Liquidity and Inducement Liquidity.
Read carefully: ⬇️
⭕️ Engineered Liquidity: The last low (or high) formed before the mitigation of a POI.
⭕️ Inducement Liquidity: The last visible swing high/low formed directly before a POI, designed to attract traders into the wrong side of the market. Think of it as a trap.
They may look similar, but they serve different purposes.
Understanding this distinction can significantly improve your trade execution and help you avoid unnecessary stop losses.
Does it make more sense now?
Study the chart below 📌