Glossary / Market structure

Displacement

An educational concept. Not a signal, not a strategy, and not a trade Josh has taken.

Stepped white and ice-blue blocks forming a rising landscape, an unlabeled picture of market structure.
Illustration of the idea, not a market chart and not a result.

A fast, strong move with large bodies and little overlap between candles, often leaving fair value gaps. It suggests one side is in clear control for the moment.

How traders use it: Used to judge whether a break of structure is meaningful, and to identify the zones (order blocks, FVGs) the move came from.

Common mistake: Chasing the displacement candle itself instead of waiting for structure to form after it.

Related: Impulse vs correction · Fair value gap (FVG) / imbalance · Momentum

See this term in the full glossary · All terms

Concepts only. Education only, not financial advice. No pattern on this site has a published win rate.