by 
This overlay strategy plots previous-day high and low, the daily open, and fair value gap zones on the price chart. It takes entries on a selectable timeframe when the FVG requirement and an optional session window allow them, then uses an ATR or fixed pip sto
Strategy · Pine Script v5 · On the chart
Inducement
This strategy identifies Smart Money Concepts (SMC) liquidity sweeps around recent pivot highs and lows.
GitHub stars7on the repository
Pine versionv5runs as is
Lines of code37
Settings1inputs
LicenceMIT
Last update3 months ago8 Jul 2026
Add It to Your TradingView Chart
- 1Copy the scriptPress Copy script above, or the copy button on the code below.
- 2Open the Pine EditorOpen a TradingView chart and choose Pine Editor at the bottom of the screen.
- 3Paste over the templateCreate a new strategy, select all of the template text and paste. Press Save and give it a name.
- 4Add it to the chartPress Add to chart. The trades and results appear in the Strategy Tester tab; adjust the settings with the gear icon.
Source Code
37 lines of Pine Script v5 from public/code/smc__inducement.pine, published under MIT. Keep the author's credit and licence lines when you reuse it.
//@version=5
strategy("Inducement", overlay=true,
default_qty_type=strategy.percent_of_equity, default_qty_value=10)
swingLb = input.int(8, "Swing Lookback")
atrVal = ta.atr(14)
ph = ta.pivothigh(swingLb, swingLb)
pl = ta.pivotlow(swingLb, swingLb)
var float lastSH = na
var float lastSL = na
if not na(ph)
lastSH := ph
if not na(pl)
lastSL := pl
// Is there inducement in the last 3 candles
wickBelow = (low[1] < lastSL and close[1] > lastSL) or (low[2] < lastSL and close[2] > lastSL) or (low[3] < lastSL and close[3] > lastSL)
wickAbove = (high[1] > lastSH and close[1] < lastSH) or (high[2] > lastSH and close[2] < lastSH) or (high[3] > lastSH and close[3] < lastSH)
longSig = wickBelow and close > open and close > math.max(high[1], high[2], high[3])
shortSig = wickAbove and close < open and close < math.min(low[1], low[2], low[3])
if longSig and strategy.position_size == 0
sl = math.min(low[1], low[2], low[3]) - 0.3 * atrVal
risk = close - sl
strategy.entry("Ind Long", strategy.long)
strategy.exit("X", "Ind Long", stop=sl, limit=close + risk * 3)
if shortSig and strategy.position_size == 0
sl = math.max(high[1], high[2], high[3]) + 0.3 * atrVal
risk = sl - close
strategy.entry("Ind Short", strategy.short)
strategy.exit("X", "Ind Short", stop=sl, limit=close - risk * 3)
plotshape(longSig, "L", shape.triangleup, location.belowbar, color.lime)
plotshape(shortSig, "S", shape.triangledown, location.abovebar, color.red)
Overview
Inducement monitors recent candles for false breakouts where price wicks beyond a swing level but closes back within the range. When confirmed by a strong directional candle, it enters trades with an ATR-adjusted stop loss placed beyond recent price extremes and sets a fixed 1:3 risk-to-reward take profit target directly on the chart.
- Pivot high and low detection using configurable lookback
- Liquidity inducement wick sweep detection beyond recent swing levels
- Candle directional breakout confirmation filter
- ATR-padded stop loss with automated 1:3 risk-reward take profit
Details
Published by
muammeryldrm42 on GitHub
Type
Strategy, Pine Script v5
Draws
On the price chart
Category
SMC / ICT / price action, Support & resistance
Markets
Any symbol
Timeframes
Any timeframe
Risk Notes
No repainting, lookahead or stacked entries were found in its code or README. That says nothing about how well it works: test it first.
Topics
cryptofuturessodexsosovaluestrategyvaluechain
Settings
The inputs you can change from the gear icon on the chart. Defaults are the author's.
| Setting | Type | Default | Variable |
|---|---|---|---|
| Swing Lookback | int | 8 | swingLb |
Third-party code. ForexR did not write, test or endorse this script, and the summary above was generated automatically from its code and README. Indicators describe the past, and a strategy's backtest can look better than live trading, especially when a script repaints. Check it in the Strategy Tester and on a demo account before you rely on it.
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