Displacement## Displacement Indicator (Institutional Momentum Filter)
This indicator highlights **true price displacement** โ 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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### ๐ How Displacement Is Defined
A candle is marked as *displacement* only when **all conditions are met**:
โข Candle body is larger than a multiple of ATR (volatility-adjusted)
โข Candle body makes up a high percentage of the full candle (strong close)
โข Directional conviction (bullish or bearish close)
This filters out:
- Small or average candles
- Wick-heavy indecision
- Low-quality breakouts
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### ๐ฏ What This Indicator Is Best Used For
โ Confirming impulsive moves
โ Validating structure breaks
โ Anchoring Fair Value Gaps
โ Filtering low-probability setups
โ Identifying institutional participation
Works best on **M5, M15, and H1**, especially during **London and NY sessions**.
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### โ ๏ธ Important Notes
โข This is **not** a buy/sell signal by itself
โข Best used with trend, structure, or liquidity context
โข Not designed for ranging or low-volatility markets
Think of this indicator as a **momentum truth filter** โ
if displacement is missing, conviction is likely missing too.
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### โ๏ธ Inputs Explained
โข ATR Length โ defines normal volatility
โข ATR Multiplier โ how aggressive displacement must be
โข Minimum Body % โ ensures strong candle closes
All inputs are adjustable to fit different markets and styles.
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### ๐ง Philosophy
Displacement reflects **commitment**, not anticipation.
This tool helps you wait for **proof**, not hope.
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If you want, I can:
- Tighten this for **ICT-style language**
- Rewrite for **beginner clarity**
- Add a **โHow I personally use itโ** section
- Optimize it for **TradingView algorithm visibility**
**Tell me which you want changed.**
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