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Trend and Structure

Break of Structure (BOS)

Also called: BOS

// Definition

A break of structure is when price closes beyond a recent swing point in the direction of the trend, confirming the trend is continuing.

Break of Structure (BOS) explained on a labelled 3D candlestick chart
Break of Structure (BOS), shown on an illustrative 3D chart. Tap the image to zoom.

Explained simply

In an uptrend, a close above the last swing high is a break of structure to the upside: the trend has made a new higher high. In a downtrend, a close below the last swing low is a break of structure to the downside.

A BOS confirms continuation. It is different from a Change of Character, which is the first break against the trend.

Tip

Use candle closes, not wicks, to confirm a break of structure.

EP 04: Market Structure: HH, HL, LH and LL Learn it on a real chart · EP 04Market Structure: HH, HL, LH and LLWatch the free lesson →

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