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Displacement: fast is not automatically meaningful
A big candle catches the eye. Measure it before getting excited.
Measure move strength relative to recent bodies and relevant structure.
Displacement is ICT vocabulary for a forceful move. Body size alone is incomplete; direction, closing position and the reference crossed also matter.
Our test compares the body with the median of the prior twenty completed bodies. Twice that median is a study threshold, not a universal rule.
Ask whether price closed beyond a premarked swing or merely surged into the middle of a range. Note the news time and spread.
Chasing after the intended entry can remove the room between risk and target. A dramatic candle can be a poor execution opportunity.
Let’s work through it
- Mark the reference before revealing the outcome.
- Measure move strength relative to recent bodies and relevant structure.
- Record the result and the conditions that would reject the idea.
Let’s use numbers · hypothetical example
Prior 20-body median 0.20 makes our 2× threshold 0.40. A 0.50 body passes the size test but does not establish a swing break if it stays inside the range.
Easy mistakes to watch for
- Mistaken assumption: Proof that every bank is buying.
- Changing the definition after seeing the result.
- Ignoring spread, slippage or the loss limit.
Keep in mind
This is a hypothetical study, not a signal. A chart label cannot identify institutional intentions or guarantee a result; include costs and a predefined loss limit.
Your turn
Measure twenty moves; record body ratio and structural break separately.
A quick check before we move on
What if a large body closes inside the old range?
- Strength observation only; no confirmed swing break.
- Proof that every bank is buying.
- Certain continuation.
Check answer
Strength observation only; no confirmed swing break. Size and structural location are separate observations.
Sources and further reading
Content reviewed: 29 October 2026
Educational material with hypothetical examples. Trading can cause substantial losses. A course, pattern, stop order or past result cannot guarantee a profit or limit every loss. Practise in simulation and check current rules and product terms in your jurisdiction.
