The inductive method is an indirect teaching approach where the teacher presents multiple examples to students rather than stating rules upfront. Students observe the examples, discuss patterns and commonalities, and work to generalize rules and conclusions. The key steps are: (1) presenting examples, (2) having students observe patterns, (3) guiding students to determine general rules or principles through discussion, and (4) testing understandings with new examples. Advantages include increased student engagement and starting with their prior knowledge, while disadvantages are that it requires more time and expert facilitation skills from teachers.