OPEN-SOURCE SCRIPT
Inducement Sweep Strategy [algotim]
Inducement Sweep Strategy [algo_aakash] enters trades only after the classic ICT inducement sequence has fully played out: an external liquidity pool is identified, an internal swing (the inducement) forms in front of it, that inducement is swept with genuine displacement, and price then confirms a Market Structure Shift back in the real direction. Every qualifying setup is scored by the Inducement Quality Index (IQI), a 0-to-100 composite that ranks how convincing the engineered move actually was before an entry signal is ever shown.
Problem Statement
Most public inducement or "sweep and BOS" scripts fire a signal the instant any minor swing is tagged and broken. They do not distinguish between an inducement that formed in front of a meaningful liquidity pool with a violent, high-conviction reversal, and a shallow internal wiggle that happened to get tapped during normal noise. Traders end up manually filtering every alert, checking chart context by hand, which defeats the purpose of automating inducement detection in the first place. This script instead separates structure identification from signal display: the full pipeline runs on every bar, but only setups that pass the quality bar are shown as entries.
Methodology
Two pivot lengths run in parallel. A longer length confirms External Structure — the major swing highs and lows that represent the real liquidity pool the market is engineered toward. A shorter length confirms Internal Structure — the minor swings that sit closer to current price. When a confirmed internal low forms above the most recent confirmed external low (or, for shorts, an internal high forms below the most recent external high), that internal point is flagged as an Inducement Candidate: a level structurally positioned to attract retail stops in front of the real liquidity pool.
The candidate remains active until price wicks through it and closes back on the correct side with a reversal body at least a user-defined ATR multiple in size — this is the Sweep, and the ATR displacement requirement filters out shallow wicks that reflect noise rather than an engineered stop run. Once swept, the script watches for a Market Structure Shift: a close beyond the internal high or low that sat between the external level and the inducement. Only this break confirms the real directional move is underway, and only then does the entry logic activate.
Each confirmed setup is scored by the IQI engine across four factors — displacement strength, sweep freshness, liquidity depth, and rejection wick quality — combined into a single 0-to-100 score. An entry signal is only displayed on the chart when the score meets the user's configured minimum, so lower-quality setups are tracked internally but never clutter the chart or trigger alerts.
If price fails to sweep the inducement within a maximum bar window, breaks the external level before the sweep, fails to confirm the MSS within its own bar window, or fails an optional retest, the setup is invalidated and the pipeline resets automatically. All structure is derived from confirmed pivots only, so nothing in the detection logic repaints.
Signal Workflow
1. Confirm a major external swing high or low using the External Structure Length.
2. Confirm a minor internal swing forming on the inducing side of that external level — this becomes the active Inducement Candidate.
3. Wait for price to wick through the inducement level and close back on the correct side with a reversal body meeting the ATR displacement threshold — this is the Sweep.
4. Wait for a confirmed close beyond the internal high/low recorded between the external level and the inducement — this is the Market Structure Shift.
5. Calculate the Inducement Quality Index from displacement, freshness, depth, and rejection wick quality.
6. If Require Retest is enabled, wait for price to pull back and hold the broken MSS level before confirming.
7. Display the entry signal with its IQI score only if the score meets the configured minimum, and fire the corresponding alert.
Why This Indicator Is Different
Standard inducement or liquidity-sweep-plus-BOS scripts treat every sweep-and-break sequence identically, regardless of how convincing the move actually was.
The Inducement Quality Index is a composite score built specifically around the mechanics of an engineered inducement move rather than a generic volatility or volume filter — it weighs how fresh the sweep was relative to the inducement, how deep the underlying liquidity pool is in ATR terms, how strong the displacement candle was, and how decisively the sweep bar rejected its extreme.
Because setups below the quality threshold are still tracked internally and simply not displayed, the pipeline status label can show a user exactly where an unfolding setup stands without forcing premature signals onto the chart.
The optional retest requirement gives discretionary traders a way to demand confirmation of the broken structure as new support or resistance before treating the setup as valid, without changing the core detection logic.
Inputs
Structure Settings
External Structure Length — pivot length confirming the major swing that anchors the real liquidity pool
Internal Structure Length — pivot length confirming the minor swing used as the inducement candidate
Inducement Settings
Max Bars to Sweep — maximum age allowed for an inducement candidate before it is discarded as stale
Max Bars to Confirm MSS — maximum age allowed between the sweep and the structure shift confirmation
Displacement Filter
ATR Length — period for the ATR used in the displacement requirement
Min Displacement (x ATR) — minimum reversal candle body, as an ATR multiple, required to validate a sweep
Signal Quality
Minimum IQI to Show Signal — setups scoring below this 0-100 threshold are tracked but not displayed
Entry Options
Require Retest Before Entry — waits for a pullback that holds the broken MSS level before confirming the signal
Trade Levels
Show Entry / Stop / Target Lines — visual-only projected levels, not a managed strategy
Reward : Risk Ratio — target distance as a multiple of the stop distance
Level Projection Length — how far right the projected lines extend
Visual Settings
Show Inducement Level, Show Sweep Marker, Show MSS Break Line, Show Pipeline Status Label
Bullish / Bearish / Inducement / MSS / Sweep Marker colors
Alert Settings
Alert: Inducement Identified, Alert: Inducement Swept, Alert: Entry Signal, Alert: Setup Invalidated
Alerts
Alerts are available for:
Bullish Inducement Identified
Bearish Inducement Identified
Bullish Inducement Swept
Bearish Inducement Swept
Long Entry Signal (with IQI score, entry, and stop level)
Short Entry Signal (with IQI score, entry, and stop level)
Setup Invalidated (bullish and bearish, optional)
Practical Usage
Raise the Minimum IQI threshold on lower timeframes or noisy instruments to surface only the most convincing engineered moves.
Enable Require Retest for a more conservative entry style that waits for the broken structure to hold before committing.
Use the pipeline status label to monitor an unfolding setup in real time without needing a signal to already have fired.
The projected trade levels are a visual reference only — position sizing and trade management remain the trader's responsibility.
Combine with a higher timeframe bias tool to only act on Inducement Sweep signals that align with the broader directional context.
Limitations
Structure confirmation requires the full pivot look-right period to elapse before a swing is confirmed, so entries occur after price has already moved past the exact reversal point. This is standard confirmed-pivot behavior and is not repainting.
The IQI score is a relative ranking based on the four factors described above and does not guarantee trade outcomes. It should be used as a filtering aid, not a standalone trading signal.
The displacement filter is ATR-relative; on instruments with unusually low volatility, the ATR multiple may need to be reduced to detect qualifying sweeps.
The indicator does not manage open positions, calculate position size, or provide exits beyond the single visual target line. It identifies potential inducement-based entries only.
Notes
All structure levels and signals are drawn at the bar index of the actual pivot or event, not the confirmation bar, ensuring accurate visual placement.
The state machine for bullish and bearish setups runs independently and concurrently, so both directions can be tracked at the same time on ranging instruments.
For best results combine with Market Structure Break BOS/CHoCH Tracker [algo_aakash] to cross-check the higher timeframe structural context before acting on a signal.
Problem Statement
Most public inducement or "sweep and BOS" scripts fire a signal the instant any minor swing is tagged and broken. They do not distinguish between an inducement that formed in front of a meaningful liquidity pool with a violent, high-conviction reversal, and a shallow internal wiggle that happened to get tapped during normal noise. Traders end up manually filtering every alert, checking chart context by hand, which defeats the purpose of automating inducement detection in the first place. This script instead separates structure identification from signal display: the full pipeline runs on every bar, but only setups that pass the quality bar are shown as entries.
Methodology
Two pivot lengths run in parallel. A longer length confirms External Structure — the major swing highs and lows that represent the real liquidity pool the market is engineered toward. A shorter length confirms Internal Structure — the minor swings that sit closer to current price. When a confirmed internal low forms above the most recent confirmed external low (or, for shorts, an internal high forms below the most recent external high), that internal point is flagged as an Inducement Candidate: a level structurally positioned to attract retail stops in front of the real liquidity pool.
The candidate remains active until price wicks through it and closes back on the correct side with a reversal body at least a user-defined ATR multiple in size — this is the Sweep, and the ATR displacement requirement filters out shallow wicks that reflect noise rather than an engineered stop run. Once swept, the script watches for a Market Structure Shift: a close beyond the internal high or low that sat between the external level and the inducement. Only this break confirms the real directional move is underway, and only then does the entry logic activate.
Each confirmed setup is scored by the IQI engine across four factors — displacement strength, sweep freshness, liquidity depth, and rejection wick quality — combined into a single 0-to-100 score. An entry signal is only displayed on the chart when the score meets the user's configured minimum, so lower-quality setups are tracked internally but never clutter the chart or trigger alerts.
If price fails to sweep the inducement within a maximum bar window, breaks the external level before the sweep, fails to confirm the MSS within its own bar window, or fails an optional retest, the setup is invalidated and the pipeline resets automatically. All structure is derived from confirmed pivots only, so nothing in the detection logic repaints.
Signal Workflow
1. Confirm a major external swing high or low using the External Structure Length.
2. Confirm a minor internal swing forming on the inducing side of that external level — this becomes the active Inducement Candidate.
3. Wait for price to wick through the inducement level and close back on the correct side with a reversal body meeting the ATR displacement threshold — this is the Sweep.
4. Wait for a confirmed close beyond the internal high/low recorded between the external level and the inducement — this is the Market Structure Shift.
5. Calculate the Inducement Quality Index from displacement, freshness, depth, and rejection wick quality.
6. If Require Retest is enabled, wait for price to pull back and hold the broken MSS level before confirming.
7. Display the entry signal with its IQI score only if the score meets the configured minimum, and fire the corresponding alert.
Why This Indicator Is Different
Standard inducement or liquidity-sweep-plus-BOS scripts treat every sweep-and-break sequence identically, regardless of how convincing the move actually was.
The Inducement Quality Index is a composite score built specifically around the mechanics of an engineered inducement move rather than a generic volatility or volume filter — it weighs how fresh the sweep was relative to the inducement, how deep the underlying liquidity pool is in ATR terms, how strong the displacement candle was, and how decisively the sweep bar rejected its extreme.
Because setups below the quality threshold are still tracked internally and simply not displayed, the pipeline status label can show a user exactly where an unfolding setup stands without forcing premature signals onto the chart.
The optional retest requirement gives discretionary traders a way to demand confirmation of the broken structure as new support or resistance before treating the setup as valid, without changing the core detection logic.
Inputs
Structure Settings
External Structure Length — pivot length confirming the major swing that anchors the real liquidity pool
Internal Structure Length — pivot length confirming the minor swing used as the inducement candidate
Inducement Settings
Max Bars to Sweep — maximum age allowed for an inducement candidate before it is discarded as stale
Max Bars to Confirm MSS — maximum age allowed between the sweep and the structure shift confirmation
Displacement Filter
ATR Length — period for the ATR used in the displacement requirement
Min Displacement (x ATR) — minimum reversal candle body, as an ATR multiple, required to validate a sweep
Signal Quality
Minimum IQI to Show Signal — setups scoring below this 0-100 threshold are tracked but not displayed
Entry Options
Require Retest Before Entry — waits for a pullback that holds the broken MSS level before confirming the signal
Trade Levels
Show Entry / Stop / Target Lines — visual-only projected levels, not a managed strategy
Reward : Risk Ratio — target distance as a multiple of the stop distance
Level Projection Length — how far right the projected lines extend
Visual Settings
Show Inducement Level, Show Sweep Marker, Show MSS Break Line, Show Pipeline Status Label
Bullish / Bearish / Inducement / MSS / Sweep Marker colors
Alert Settings
Alert: Inducement Identified, Alert: Inducement Swept, Alert: Entry Signal, Alert: Setup Invalidated
Alerts
Alerts are available for:
Bullish Inducement Identified
Bearish Inducement Identified
Bullish Inducement Swept
Bearish Inducement Swept
Long Entry Signal (with IQI score, entry, and stop level)
Short Entry Signal (with IQI score, entry, and stop level)
Setup Invalidated (bullish and bearish, optional)
Practical Usage
Raise the Minimum IQI threshold on lower timeframes or noisy instruments to surface only the most convincing engineered moves.
Enable Require Retest for a more conservative entry style that waits for the broken structure to hold before committing.
Use the pipeline status label to monitor an unfolding setup in real time without needing a signal to already have fired.
The projected trade levels are a visual reference only — position sizing and trade management remain the trader's responsibility.
Combine with a higher timeframe bias tool to only act on Inducement Sweep signals that align with the broader directional context.
Limitations
Structure confirmation requires the full pivot look-right period to elapse before a swing is confirmed, so entries occur after price has already moved past the exact reversal point. This is standard confirmed-pivot behavior and is not repainting.
The IQI score is a relative ranking based on the four factors described above and does not guarantee trade outcomes. It should be used as a filtering aid, not a standalone trading signal.
The displacement filter is ATR-relative; on instruments with unusually low volatility, the ATR multiple may need to be reduced to detect qualifying sweeps.
The indicator does not manage open positions, calculate position size, or provide exits beyond the single visual target line. It identifies potential inducement-based entries only.
Notes
All structure levels and signals are drawn at the bar index of the actual pivot or event, not the confirmation bar, ensuring accurate visual placement.
The state machine for bullish and bearish setups runs independently and concurrently, so both directions can be tracked at the same time on ranging instruments.
For best results combine with Market Structure Break BOS/CHoCH Tracker [algo_aakash] to cross-check the higher timeframe structural context before acting on a signal.
Skrip open-source
Dengan semangat TradingView yang sesungguhnya, pembuat skrip ini telah menjadikannya sebagai sumber terbuka, sehingga para trader dapat meninjau dan memverifikasi fungsinya. Salut untuk penulisnya! Meskipun Anda dapat menggunakannya secara gratis, perlu diingat bahwa penerbitan ulang kode ini tunduk pada Tata Tertib kami.
Build your trading tools with AI : algotim.com
All content provided by AlgoTim (algo_aakash) is for informational and educational purposes only. Trading involves risk, and past performance does not guarantee future results.
All content provided by AlgoTim (algo_aakash) is for informational and educational purposes only. Trading involves risk, and past performance does not guarantee future results.
Pernyataan Penyangkalan
Informasi dan publikasi ini tidak dimaksudkan, dan bukan merupakan, saran atau rekomendasi keuangan, investasi, trading, atau jenis lainnya yang diberikan atau didukung oleh TradingView. Baca selengkapnya di Ketentuan Penggunaan.
Skrip open-source
Dengan semangat TradingView yang sesungguhnya, pembuat skrip ini telah menjadikannya sebagai sumber terbuka, sehingga para trader dapat meninjau dan memverifikasi fungsinya. Salut untuk penulisnya! Meskipun Anda dapat menggunakannya secara gratis, perlu diingat bahwa penerbitan ulang kode ini tunduk pada Tata Tertib kami.
Build your trading tools with AI : algotim.com
All content provided by AlgoTim (algo_aakash) is for informational and educational purposes only. Trading involves risk, and past performance does not guarantee future results.
All content provided by AlgoTim (algo_aakash) is for informational and educational purposes only. Trading involves risk, and past performance does not guarantee future results.
Pernyataan Penyangkalan
Informasi dan publikasi ini tidak dimaksudkan, dan bukan merupakan, saran atau rekomendasi keuangan, investasi, trading, atau jenis lainnya yang diberikan atau didukung oleh TradingView. Baca selengkapnya di Ketentuan Penggunaan.