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Displacement

By LuxAlgoMar 6, 2026

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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 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 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.

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