💰 Liquidity Sweeps & Traps EXPLAINED! 🔥 Master Forex Trading Smart Moves! #Forex #TradingStrategy

Key Points on Liquidity Sweep, Impulse Moves, and Inducement in Forex Trading: 1. Sweep of Liquidity at a Previous Swing Point This occurs when the market takes out stop losses or liquidity resting above or below a swing high/low. It is a deliberate move by institutional players to gather liquidity for the next market direction. Traders often look for a reversal signal after the sweep, as it marks the potential exhaustion of liquidity. 2. The Impulse Move Following the Order Block and FVG (Fair Value Gap) After a liquidity sweep, the market often creates an impulse move, targeting an order block or a fair value gap. This move typically aligns with the smart money concept (SMC), where price retraces to fill the imbalance (FVG) or mitigates an order block before continuing the trend. 3. Inducement or Trap Inducement is a price action setup designed to lure retail traders into the market by creating a false sense of breakout or trend continuation. It often precedes the true move and can be identified when liquidity is engineered at visible levels like double tops, double bottoms, or trendlines. Recognizing inducement helps traders align with institutional moves rather than getting caught in traps.