Displacement – Look for Strength, Not Just Direction

Displacement is a strong and decisive price movement that often reflects an imbalance in buying or selling pressure.

In ICT trading, displacement can help confirm a potential shift in market direction.

Look for:

1. Strong-bodied candles.

2. Decisive movement away from a price level.

3. Possible Fair Value Gap formation.

4. A meaningful structural break.

A slow, weak movement and a strong displacement should not be treated equally.

Do you require displacement before entering an FVG trade?