In the world of theatrical illusion,misdirection is a method of deceit in which the performer draws audience attention to one item to distract them from something else. Controlling attention of the audience is the main goal of any performances,and the most important requirement of all magic acts. It doesn’t matter if the magic is the “pocket trick” variety or an extensive stage production,misdirection is the central element. The term refers to either the result (the the focus of the observer on the unimportant object) or the sleight-of-hand or the patter (the magician’s voice) that creates it.
It is difficult to say who first coined the term,but an early reference to misdirection appears in the writings of a renowned illusionist and author,Nevil Maskelyne: Admittedly,it involves spooking the senses of the audience in order to screen from being aware of certain information in which confidentiality is essential. At the same time,magician,artist and author Harlan Tarbell noted,Nearly the whole art of sleight-of-hand depends on the art of misdirection.
A few magicians who have studied and developed techniques of misdirection include Max Malini,Tommy Wonder,Derren Brown,Juan Tamariz,Tony Slydini,along with Dynamo.
Henry Hay describes the central act of conjuring as manipulating interest.
Magicians can divert attention from the audience in two basic ways. The first is to make the audience look away for a fleeting time,so that they aren’t aware of a act or gesture. Another approach alters the perception of the audience,lulling the audience into believing that an extraneous factor can be a factor in the success of the trick when it really does not have any bearing on the result in any way. Dariel Fitzkee explains that the most effective magic is in the talent he exhibits in influencing the spectators mind. Additionally,sometimes a prop like a magic wand aids in the misdirection.

Absent it,even the most proficient sleight-of-hand or mechanical device is unlikely to create an illusion of true magic. In truth,misdirection is the key of nearly all compelling illusions.
Misdirection uses the limits of human brains to create a false picture and memory. The mind of a typical person in the audience can only concentrate on one thing at a time. The magician utilizes this to manipulate the viewers’ thoughts or perceptions of sensory inputwhich leads them to incorrect conclusions.
A few magicians have debated the use of the term,misdirection,causing many discussions about the meaning of it and how it operates. Renowned magician Jon Finch made a distinction in misdirection from direction. One being a negative termas opposed to the other,positive. In the end,he considers the two as one thing. If a performer,by any means,has led the mind of the audience to conclude that he’s done something he hasn’t accomplished,he has incorrectly directed them into this beliefand,consequently,misdirection.
Tommy Wonder has pointed out that it is much more efficient,from a magician’s perspectiveto focus on the goal of directing attention to the audience. He writes that misdirection suggests an untrue direction. It suggests that attention is diverted away from something. Through constant use of this phrasethe idea eventually becomes it is ingrained into our brains that we may begin to perceive misdirection as directing the attention away from instead of towards something.

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