Unfortunately this plugin does not support pagination / navigation currently.
Since it has been requested a few times, I plan to build an extension plugin at some point to add this functionality. You can follow its progress here: https://github.com/billerickson/display-posts-shortcode/issues/209
Bump!
I second this because I have an identical need.
I use [display_posts] as a catalog of categorized materials encoded in posts.
I select posts for display on <category>.
Instead of having one loooooooooong page showing all posts within a given category, I like my output paginated.
Pagination has actually two distinct advantages:
-1- paginated pages better conform to the theme’s layout
-2- multiples links to your content through pagination helps increase your SEO
Let me know how I can help speed-up development of pagination for your God-awesome [display_posts] plugin.
–SkidRow