Displacement
Updated 2026-09-20
Definition
A wide, fast move, with strong candles, that accompanies the break of a structure.
Why it matters
It's defined objectively, for example a body greater than 1.5 × ATR. It gives a break more weight and usually leaves a fair value gap.
Practical example
An H1 candle with a 25-pip body with a 12-pip ATR (2 × ATR) closing beyond the last swing high.
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Educational content, not financial advice. Trading involves risk.