THE Order Block

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.

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