ICT Displacement: Define More Than a Large Candle

Calling a candle strong after seeing the chart is easy. Detecting the next case consistently requires a reference for strength and a confirmation time.


English · 한국어

Calling a candle strong after seeing the chart is easy. Detecting the next case consistently requires a reference for strength and a confirmation time.

The candle body is four times as large. Body 20 ÷ usual body 5 = 4×
Concept illustration: A larger body is one measurable feature; it is not a validated signal threshold by itself.

The visual description

ICT and SMC use displacement for a directional price expansion. Large bodies, limited overlap, swing breaks, and FVGs may be included, but this is not a standardized exchange field.

Body size is the absolute close–open difference; range is high minus low. Body as a share of range is one possible measurement.

A numerical teaching example

Suppose the previous 20 completed candles have a median range of 2 and the current completed range is 5. Relative range is 2.5 times the reference. A body of 4 occupies 80% of that range.

These are calculation inputs, not recommended thresholds or a validated strategy. The same absolute move can mean something different in a high-volatility market. Use a past-data reference and do not divide by a zero range.

Two ways to measure a candle. 2.5× · Relative range · Range 5 ÷ prior 20-bar median range 2; 80% · Body share · Body 4 ÷ full range 5 × 100; Separate · Structure and FVG · Record swing breaks and FVGs separately.
Illustrative example: These are examples, not validated signal thresholds.

Store structure and FVG separately

Separate strong-move, confirmed-swing-break, and FVG flags to examine their additional information. Defining strength only for candles followed by successful continuation embeds the outcome in the label.

When was it knowable?

Close, high, and low conditions become final at bar close. A pivot may only be confirmed later. Timestamp the event when all required information is available.

Equity announcements and futures session openings can also produce large candles. Preserve market, session, and announcement context rather than transferring BTC findings without a test.

Continue with common foundations

Market structure · FVG basics · Order blocks · ICT liquidity

Research methods and reporting standards

For education and research. Numerical examples are teaching assumptions unless explicitly identified otherwise. Historical results do not guarantee future performance.

ABOUT THIS ARTICLE

This article is for education and research, not advice tailored to your finances. Historical findings do not guarantee future returns.

Methodology · Disclosure · Corrections

TRADE EVIDENCE에서 더 알아보기

지금 구독하여 계속 읽고 전체 아카이브에 액세스하세요.

계속 읽기