In theatrical illusion,misdirection is an art of deceit that is able to draw attention of the audience to one thing to distract it from the other. The ability to control attention from the audience is the goal of every theater,and the foremost need of any magic act. Whether the magic is of a “pocket trick” variety or a large stage productionthat relies on misdirection,it is the primary secret. The term refers to either the result (the the focus of the observer on an object that is not important) or the sleight-of-hand or the patter (the magician`s voice) that creates it.
It`s hard to pinpoint who was the first person to coin the phrase,however the first reference to misdirection can be found in the writings of a renowned author and performer named Nevil Maskelyne. it is a method of distracting the senses of the audience to hide from being aware of certain information that require secrecy. At the same time,the magicianand artist Harlan Tarbell noted,Nearly all the art of sleight-of-hand depends on this art of misdirection.
Some magicians who have studied and refined misdirection techniques include Max Malini,Derren Brown,Tamariz,Slydini,Tommy Wonder,along with Dai Vernon.
Henry Hay describes the chief act of conjuring as a manipulation of interest.
Many magicians can divert attention from the audience in two basic ways. One leads the audience to glance away for a brief moment,so that they aren`t aware of a sleight or move. The other method alters the viewers` perceptions,leading the audience into believing that an extraneous factor can be a factor in the accomplishment of the feat but it actually does not have any bearing on the result in any way. Fitzkee says that the real talent of the magician is in the skill of his performance in changing the mind of the audience. Additionally,sometimes a prop like the magic wand can aid in the misdirection.
Except with the skill in it,even the most skilled sleight-of-hand or mechanical gimmick is not likely to produce an illusion of strong magic. As a matter of fact,misdirection is the essence of almost all effective magic.
Misdirection exploits the limitations of the human mind to present a false image and memory. The brain of an average person in the audience can only concentrate on one thing at the time. The magician makes use of this to manipulate the perceptions or ideas of the audience of sensory inputand lead them to make false conclusions.
A few magicians have debated over the usage of the term,”misdirection,” causing plenty of debate about what it is and how it functions. Renowned magician Jon Finch drew a distinction between misdirection and direction. The first is a negative phrase,and the other positive. In the end,he considers the two as one thing. If a performer,through some method,has influenced the thoughts of his viewers to believe that he`s done something he hasn`t done,he`s wrongly directed them into this beliefand,consequently,misdirection.
Tommy Wonder has pointed out that it is much more effective,from the magician`s perspectivein focusing on the goal of directing attention to the audience. He states that misdirection is the wrong direction. It suggests that attention is diverted away towards something. By constantly using this termthe idea eventually becomes ingrained in our minds that we begin to perceive misdirection as directing attention away from rather than toward something.

Slydini explained that if a magician believes that,the audience will believe in it,and magicians are something that they cannot observe. The trick is to believe in what the magician is doing and then follows the magician. read more info about misdirection here
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