ICT Displacement Explained

What is Displacement in ICT?

A forceful, directional repricing move that shows clear momentum and may break structure or create an imbalance.

Definition of Displacement

A strong expansion candle or sequence with relatively large bodies, decisive closes and limited overlap compared with nearby price action.

How to identify Displacement

Compare candle bodies/range with recent bars; look for decisive close through a meaningful level and possible FVG creation.

Bullish Displacement example

strong upward candles close through a prior swing high and may leave a bullish FVG.

Bearish Displacement example

strong downward candles close through a prior swing low and may leave a bearish FVG.

Displacement chart examples

Practical trading example

Following a low sweep, a wide bullish candle closes above an internal high and leaves an FVG; this supports a bullish shift hypothesis.

Common mistakes and important notes

There is no universal numeric threshold for displacement. Large candles during news can be volatile and unreliable.

Related ICT concepts

Part of Imbalances and Price Gaps. New to ICT? Start with the beginner guide.