Displacement

## Displacement Indicator (Institutional Momentum Filter)

This indicator highlights **true price displacement** — candles where price moves with **abnormal force relative to recent volatility**.
It is designed to help traders distinguish **real momentum** from normal market noise.

Displacement often precedes:
- Breaks of structure
- Fair Value Gaps (FVGs)
- Strong continuation or meaningful pullbacks

This tool focuses on **confirmation**, not prediction.

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### 🔍 How Displacement Is Defined

A candle is marked as *displacement* only when **all conditions are met**:

• Candle body is larger than a multiple of ATR (volatility-adjusted)
• Candle body makes up a high percentage of the full candle (strong close)
• Directional conviction (bullish or bearish close)

This filters out:
- Small or average candles
- Wick-heavy indecision
- Low-quality breakouts

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### 🎯 What This Indicator Is Best Used For

✔ Confirming impulsive moves
✔ Validating structure breaks
✔ Anchoring Fair Value Gaps
✔ Filtering low-probability setups
✔ Identifying institutional participation

Works best on **M5, M15, and H1**, especially during **London and NY sessions**.

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### ⚠️ Important Notes

• This is **not** a buy/sell signal by itself
• Best used with trend, structure, or liquidity context
• Not designed for ranging or low-volatility markets

Think of this indicator as a **momentum truth filter** —
if displacement is missing, conviction is likely missing too.

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### ⚙️ Inputs Explained

• ATR Length – defines normal volatility
• ATR Multiplier – how aggressive displacement must be
• Minimum Body % – ensures strong candle closes

All inputs are adjustable to fit different markets and styles.

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### 🧠 Philosophy

Displacement reflects **commitment**, not anticipation.
This tool helps you wait for **proof**, not hope.

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- Tighten this for **ICT-style language**
- Rewrite for **beginner clarity**
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**Tell me which you want changed.**