Trading glossary
Displacement: meaning in trading
Displacement is a strong, decisive candle (or run of candles) with large bodies and small wicks, showing real intent.
When a big player commits, price moves fast: large bodies, little hesitation. That is displacement.
A change of character made with a displacement candle is stronger than one that drifts through the level. It often leaves a fair value gap behind.
Learn more
Lesson: CHoCH: the change of character
Related terms: Fair value gap (FVG) · Change of character (CHoCH) · Order block