Displacement Candles
Displacement Candles
Displacement candles are abnormally large, high-momentum candles that signal a strong shift in market sentiment — often the candle that creates a Fair Value Gap.
What it shows:
Highlighted candles (color change) when a displacement occurs
Works on both bullish and bearish displacement
How to use it:
Set Displacement Type to measure either the candle body or the full candle including wicks
Displacement Strength (0–3) controls how aggressive the filter is — higher = rarer, stronger signals
Enable Structure Filter to only show displacement candles that occur near a BOS or MSS event — this dramatically improves signal quality
A displacement candle followed by a pullback into the FVG it created is one of the cleanest entry setups in SMC trading
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