# Displacement Displacement is an indicator on [Vela](https://vela.luxalgo.com/chart), our next-generation charting platform, written in Pine Script®. Flags displacement legs: runs of one-directional closes whose net travel clears 4x the average candle body of the last 40 bars, with a 60% body-efficiency floor and per-leg statistics in hover tooltips. Optional structure-shift, liquidity-sweep, and killzone filters attach the context SMC models demand before trusting a repricing. - Indicator in the LuxAlgo Library, by LuxAlgo, published Mar 6, 2026. - Access: free. - Concepts: [Displacement](https://www.luxalgo.com/library/concept/displacement/) (primary) - Open on Vela: https://vela.luxalgo.com/chart?pineScriptCodeId=rbdws4lpoxvzs9pgdy6wdgd1 - Page: https://www.luxalgo.com/library/indicator/displacement/ **Displacement** flags the legs where the market jumps to a new price rather than negotiating: runs of one-directional closes whose travel dwarfs the recent tape. Turning the [displacement](https://www.luxalgo.com/library/concept/displacement/) read into measurable criteria, it freezes a baseline before each leg, requires the leg's travel to clear a multiple of it, and enforces a per-candle body floor and an efficiency minimum. ## How to Trade the Displacement? - **Leg highlight and tag**: a qualifying repricing; the tooltip reports bars, travel versus baseline, body efficiency, and any imbalance left inside. - **Closed through structure**: a leg breaking the prior untaken swing point is a structure shift backed by displacement. - **Delivered from a sweep**: a leg launched from a raid on the opposite swing, the sweep-then-displace evidence of a turn. - **Killzone timing**: restrict qualification to the London and New York killzone windows. ## Displacement Settings - **Baseline** (default Average Body) and **Baseline Length** (default 40): the trailing yardstick; ATR is stricter, counting wicks and gaps. - **Travel Multiple** (default 4): minimum net travel versus the baseline. When in doubt, raise it. - **Min Candle Body Multiple** (default 1): per-candle body floor; 0 disables it. - **Leg Length (Min / Max)** (defaults 1 / 5): allowed run of one-directional closes. - **Min Body Efficiency %** (default 60): net travel as a share of the leg's span. - **Require Imbalance Residue** (default disabled): demand a fair value gap inside the leg. - **Swing Length** (default 5), **Only Through Structure** (default disabled), **Only From Liquidity Sweep** (default disabled), and **Sweep Window (Bars Before Leg)** (default 5): the context filters. - **Only Inside Killzones** (default disabled), with **London Killzone** (default 0200-0500), **New York Killzone** (default 0700-1000), and **Killzone Timezone** (default America/New_York). - **Highlight Displacement Legs** and **Displacement Labels** (both enabled) govern the visuals. ## Frequently Asked Questions ### How is displacement different from a plain momentum burst? A burst can be one large candle inside two-sided trade; displacement is one-sided delivery graded against its own tape. [Momentum Thrust](https://www.luxalgo.com/library/indicator/momentum-thrust/) covers that simpler bar-strength read. ### Why didn't an obviously huge candle qualify? Usually a guard: the baseline was already violent, a long wick dropped efficiency below 60%, or a doji broke the run. Candles that qualify on a quiet tape should not qualify on a loud one. ### Should I require the imbalance residue? Most treatments rank the gap as supporting evidence, and a single-candle leg usually prints its gap on the following bar, so by default it is reported, not enforced. ## Related indicators - [Ultimate AMD Indicator](https://www.luxalgo.com/library/indicator/ultimate-amd-indicator/) (Accumulation-manipulation-distribution): markdown at https://www.luxalgo.com/library/indicator/ultimate-amd-indicator.md - [AMD FVG Trade Setup](https://www.luxalgo.com/library/indicator/amd-fvg-trade-setup/) (Accumulation-manipulation-distribution): markdown at https://www.luxalgo.com/library/indicator/amd-fvg-trade-setup.md - [FVG + Liquidity Sweep + CISD](https://www.luxalgo.com/library/indicator/fvg-liquidity-sweep-cisd/) (Change in State of Delivery): markdown at https://www.luxalgo.com/library/indicator/fvg-liquidity-sweep-cisd.md - [HTF CISD Projections](https://www.luxalgo.com/library/indicator/htf-cisd-projections/) (IPDA & Price Delivery Theory): markdown at https://www.luxalgo.com/library/indicator/htf-cisd-projections.md - [HTF PO3](https://www.luxalgo.com/library/indicator/htf-po3/) (Accumulation-manipulation-distribution): markdown at https://www.luxalgo.com/library/indicator/htf-po3.md - [CISD Projections](https://www.luxalgo.com/library/indicator/cisd-projections/) (IPDA & Price Delivery Theory): markdown at https://www.luxalgo.com/library/indicator/cisd-projections.md - [SMT Divergences](https://www.luxalgo.com/library/indicator/smt-divergences/) (Smart Money Technique Divergence): markdown at https://www.luxalgo.com/library/indicator/smt-divergences.md - [Institutional Order Flow Strength Classifier](https://www.luxalgo.com/library/indicator/institutional-order-flow-strength-classifier/) (Institutional Order Flow): markdown at https://www.luxalgo.com/library/indicator/institutional-order-flow-strength-classifier.md --- Source: https://www.luxalgo.com/library/indicator/displacement/ (LuxAlgo Library). Free to use with attribution: https://www.luxalgo.com/library/license/