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Displacement
An impulsive, high-energy move: a candle or series of candles far larger than recent ranges, often read as a sign of institutional participation.
What it is
Displacement is a burst of directional order flow: a candle whose body dwarfs the recent average (often measured against ATR), typically breaking structure and leaving Fair Value Gaps behind. It separates a genuine change of intent from ordinary back-and-fill rotation.
Why it matters
After a liquidity sweep, displacement is the confirmation. Sweep without displacement is chop; sweep plus displacement is a setup.
NQ example ILLUSTRATION
After sweeping a session low, NQ prints a full-bodied 45-point up candle on expanding volume. That displacement is what traders read as the sweep being accumulation, not continuation lower.