1736, "wrong direction, erroneous guidance," from mis- (1) "bad, wrong" + direction. Meaning "action of a conjurer, thief, etc. to distract someone" is from 1943.
Entries linking to misdirection
mis- 1
prefix of Germanic origin affixed to nouns and verbs and meaning "bad, wrong," from Old English mis-, from Proto-Germanic *missa- "divergent, astray" (source also of Old Frisian and Old Saxon mis-, Middle Dutch misse-, Old High German missa-, German miß-, Old Norse mis-, Gothic missa-), perhaps literally "in a changed manner," and with a root sense of "difference, change" (compare Gothic misso "mutually"), and thus possibly from PIE *mit-to-, from root *mei- (1) "to change."
Productive as word-forming element in Old English (as in mislæran "to give bad advice, teach amiss"). In 14c.-16c. in a few verbs its sense began to be felt as "unfavorably," and it came to be used as an intensive prefix with words already expressing negative feeling (as in misdoubt). Practically a separate word in Old and early Middle English (and often written as such). Old English also had an adjective (mislic "diverse, unlike, various") and an adverb (mislice "in various directions, wrongly, astray") derived from it, corresponding to German misslich (adj.). It has become confused with mis- (2).
direction n.
late 14c., direccioun, "action of directing or guiding," from Latin directionem (nominative directio) "a making straight, a straight line, a directing (toward something)," noun of action from past-participle stem of dirigere "to set straight, arrange; give a particular direction to," from dis- "apart" (see dis-) + regere "to direct, to guide, keep straight" (from PIE root *reg- "move in a straight line").
Meaning "the act of governing, administration" is from early 15c. Sense of "relative position without regard to distance" is from 1660s. Meaning "course pursued by a moving object" is from 1660s.
Sense of "order, instruction in how to proceed" is from early 15c.; specific sense of "instruction in how to get somewhere" is from 1590s (directions in this sense is by 1749). Related: Directional.