Market StructureIntermediate#SMC#Momentum
Displacement
D
Definition
A powerful move in price that shows clear institutional intent, leaving multiple Fair Value Gaps behind.
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Concept Diagram
Key Takeaways
1
Displacement is a strong impulsive price move indicating institutional activity
2
Characterized by large-bodied candles that move quickly through price levels
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Often creates fair value gaps and liquidity voids in its wake
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Displacement away from a premium zone signals strong bearish intent and vice versa
Practical Example
After ranging for days, BTC suddenly drops $3,000 in two hourly candles — this displacement signals strong institutional selling. A fair value gap is left between $62,000-$63,500 marking a potential retracement target.
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Related Terms
Market Structure
Market Structure Break (MSB)When price breaks the previous valid high/low, signaling a potential shift in the primary market trend.
Market Structure
Power of 3 (PO3)A market cycle concept consisting of three distinct phases: Accumulation, Manipulation, and Distribution.
Market Structure
Breaker BlockSimilar to a mitigation block, but it involves a stop hunt (liquidity grab) before the structure is broken.
Market Structure
Liquidity VoidA sudden, explosive price movement that leaves no orders filled in its wake, often seen during black swan events or news.
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