ForexLens

Floor 3: Imbalance

Displacement Meter

Displacement Meter rings one candle and hands you a meter. You set how many times the average range of the ten candles before it the body is worth. At 2x or more the meter reads displacement, below that noise. It teaches you to measure a move instead of calling every large candle significant.

Create a free account to play

Free, with a verified email address. An account saves your progress, and floors and tiers open as you level up.

What it teaches

Measuring a move instead of guessing at it.

  • The two tests for displacement: body at least twice the recent average range, and body at least 60% of the high-to-low range of the candle itself.
  • Why a long candle that is mostly wick fails.
  • Why size is relative: the same candle is displacement on a quiet chart and noise on a busy one.
  • Checking whether the move left a fair value gap.

How a round plays

  1. A chart appears with one candle ringed. Compare its body, open to close, with the ten candles before it.
  2. Set the meter in multiples of the average candle: drag it, tap the track, or use the minus and plus buttons in steps of 0.1.
  3. The side of 2x you land on is your call: displacement or noise.
  4. Press "Lock in". The Lens shows the measured multiple, the body and the average in pips, and whether the candle left a fair value gap.
  5. A run is ten candles and takes about three minutes. Early levels draw a ruler of average candles beside the body.

How it is graded

The rule here: body at least 2 times the average high-to-low range of the ten candles before, and at least 60% of the range of the candle itself. Which side of 2x your reading lands on decides right or wrong, and a reading within half a multiple of the measured value earns the rest.

The honest note

The thresholds are a convention chosen so the idea can be graded. A candle that passes is large and decisive by this measure, which is not the same as knowing who traded it.

The concepts behind it