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A sudden, powerful move with big candles: the footprint of serious buying or selling.
Illustration, not real market data.
What it is
Displacement is a fast, strong move made of large candles with small wicks, usually leaving fair value gaps behind. It shows that large orders pushed price, rather than drift.
Many models only trust a break of structure or an FVG if it was created by displacement.
How to spot it
Several large bodies in one direction, bigger than the candles before them.
FVGs left in its path.
How to use it
Use displacement to confirm a change in direction after a liquidity sweep.
Look for entries on the pullback into the FVGs or order block it left.
Common mistakes
Chasing the displacement candle itself instead of waiting for the pullback.
Calling any big candle displacement, even news spikes that reverse straight away.