Inducement After Break of Structure (BOS) — Minor BOS & New Inducement Identification

Practical ICT Strategies – 7th Edition Released

Over 150 pages of knowledge coming from 8+ years of experience from Professional ICT Trader.

👉 Buy Now! ➝

Sponsored

In this guide I uncover the secrets of inducement after break of structure — the scenario where price moves through a BOS without sweeping the original inducement and a new inducement has to be marked.

As you may have noticed, sometimes after a break of structure price does not sweep the inducement and continues its move — so:

(I) Should we wait for price to take the inducement created before the break of structure (BOS)?

(II) Will it create a new inducement?

(III) How do we identify the new inducement?

If you are new to my blog and the inducement concept, I recommend you first study What is Inducement in Forex and then continue reading this article.

Before going toward the core concept of inducement after break of structure you should have knowledge about minor break of structure.

What is Minor Break of Structure?

(I) In Bullish Market

After a major break of structure, when price moves up without sweeping the inducement and forms a Swing High, you have to wait for price to close above that swing high.

This scenario, known as a minor break of structure, results in a shift of the price high while the rest of the market structure remains unchanged.

(II) In Bearish Market

After a major break of structure, when price moves down without sweeping the inducement and forms a Swing Low, you need to wait for price to close below that swing low.

This scenario results in a shift of the price low while the rest of the market structure remains unchanged.

What is Inducement after Break of Structure?

As discussed earlier, price sometimes continues its move after a break of structure and does not pull back to sweep the inducement.

In this scenario, if we wait for price to sweep the first inducement, we will not get a trading opportunity at all.

So we wait for price to create a new inducement and then grab it.

After that we can look for a trading opportunity, and the structural highs and lows will also be confirmed.

(I) Inducement after BOS in Bullish Market

In a bullish market structure, price makes Higher High and Higher Low. When price breaks the previous high it is called a break of structure, and the Valid Pullback before the BOS level is marked as inducement.

But if price does not grab the original inducement and continues to move bullish, we wait for a minor break of structure to find a new inducement.

When a minor break of structure happens, mark the lowest low and highest high of the bullish price leg which broke the swing high.

Now find a Valid Pullback in that bullish price leg and it will be the inducement level.

In this way you can look for each new inducement whenever price moves up without sweeping the inducement.

(II) Inducement after BOS in Bearish Market

In a bearish market structure, price makes Lower High and Lower Low. When price breaks the previous low it is called a break of structure, and the valid pullback before the BOS level is identified as inducement.

If price continues to move bearish without grabbing the inducement, we wait for a minor break of structure to identify a new inducement.

When a minor break of structure occurs, mark the highest high and lowest low of the bearish price leg that broke the swing low.

Next, identify a Valid Pullback within that bearish price leg, which will serve as the inducement level.

This approach allows you to look for each new inducement whenever price moves down without sweeping the previous inducement.

Step-by-Step Inducement After BOS Trade Flow

This is the exact sequence I run when the original inducement has not been swept after a major BOS.

1. Confirm the major BOS. Higher-timeframe break above the previous high (bullish) or below the previous low (bearish).
2. Check for the original inducement sweep. If price already swept the pre-BOS inducement, trade that instead — there is no need to wait for a new one.
3. Watch for price moving away without the sweep. Bullish — price continues up and forms a new swing high. Bearish — price continues down and forms a new swing low.
4. Wait for the minor BOS. Bullish — close above the new swing high. Bearish — close below the new swing low.
5. Mark the new bullish or bearish leg. The lowest low to the highest high (bullish) or the highest high to the lowest low (bearish) of the leg that produced the minor BOS.
6. Find the valid pullback inside the leg. That valid pullback is the new inducement.
7. Wait for the sweep of the new inducement. Bullish — price dips below the new inducement low. Bearish — price spikes above the new inducement high.
8. Wait for confirmation. A lower-timeframe MSS, fair value gap or order block formed after the sweep.
9. Enter on the retest. Take the trade in the higher-timeframe direction at the post-sweep PD array.
10. Stop and target. Stop beyond the swept inducement extreme. Target the next draw on liquidity (old high or low, relative equal level, or higher-timeframe FVG).

Common Mistakes Around Inducement After BOS

These are the recurring mistakes I see when traders first start tracking inducement after a break of structure.

1. Holding onto the original inducement when price has clearly moved on. If price has already produced a minor BOS away from the original inducement zone, the original inducement is stale. Mark the new one.
2. Marking inducement before the minor BOS confirms. The minor BOS — the close above the new swing high (or below the new swing low) — is what validates the new leg. Marking inducement during the leg, before the close confirms, leads to fake levels.
3. Picking the wrong pullback inside the new leg. Use the FIRST valid pullback inside the new leg, not the deepest one and not the most recent one.
4. Trading without higher-timeframe alignment. Inducement-after-BOS only matters when the higher-timeframe bias is intact. In a choppy higher timeframe, every minor BOS is just noise.
5. Confusing minor BOS with full reversal. A minor BOS shifts the high or low, it does not change the trend. The trend is still defined by the major structure.
6. Tight stops at the inducement itself. Stop must sit BEYOND the swept inducement extreme — not at the inducement level. Stops parked at the inducement get hunted on the second test.

Best Timeframe for Inducement After BOS

Use the 15-minute timeframe to mark the new inducement and execute the trade. Use the 1-day and 4-hour for the higher-timeframe market structure context — without that context the minor BOS is just intraday noise and the framework collapses.

FAQs about Inducement After Break of Structure

Brief answers to the questions readers ask most often about inducement after BOS.

What is inducement after break of structure?

Inducement after BOS is the new inducement level that gets created when price moves through a major BOS without sweeping the original inducement. The new valid pullback inside the leg that produced the minor BOS becomes the new inducement.

What is a minor break of structure?

A minor BOS is a close above a new swing high (in a bullish market) or below a new swing low (in a bearish market) that occurs after a major BOS without the original inducement being swept. It shifts the price high or low while the rest of the market structure remains unchanged.

Why does price sometimes skip the original inducement?

When the algorithmic delivery is already pricing into a higher-timeframe draw on liquidity, it does not need to sweep the original inducement first. The move bypasses the original inducement and continues — which is exactly when the new inducement framework comes in.

Should I still wait for the original inducement to be swept?

Only if price stays inside the original BOS zone. Once price has produced a minor BOS away from the original inducement, the original level is stale — wait for the new inducement instead.

Where is the new inducement after a minor BOS?

It is the valid pullback inside the new bullish or bearish leg that produced the minor BOS. Mark the lowest low to highest high (bullish) or highest high to lowest low (bearish) of that leg, then find the first valid pullback inside it.

Does this concept work on indices and gold?

Yes — NQ, ES and XAU/USD all produce textbook minor-BOS-and-new-inducement patterns, especially during the New York AM session and around US economic releases.

What timeframe is best?

15-minute for marking and execution. 1-day and 4-hour for the higher-timeframe market structure context.

What is the difference between the original inducement and the inducement after BOS?

The original inducement is the valid pullback before the major BOS. The inducement after BOS is the valid pullback inside the leg that produced the minor BOS — it only exists when the original inducement has not been swept.

How do I avoid this becoming an infinite chain?

Each new minor BOS produces a new inducement. If the new inducement is also not swept and another minor BOS follows, repeat the process. The chain only ends when the inducement is finally swept and the algorithm delivers the real move.

It is important to mention that while market structure can provide valuable insights, it is not foolproof and should be used in conjunction with other technical analysis tools. Market conditions can change rapidly, so it is essential to consider other factors before making trading decisions and always use a stop loss to keep your equity safe.