BOS — a break of structure with the trend

Price broke the previous high in the direction of the trend. The trend is confirmed and continues.

Author: I. D. Galtsov

Scheme on candles

BOS — a break of structure with the trend — what it is?

BOS is a break of structure in the direction of the trend — a continuation. In an uptrend it is taking out the previous high, in a downtrend the previous low.

The meaning of the event is confirmation. A large participant committed volume, the move carried on, the sequence of swing points held.

BOS does not reverse a trend and does not start one. It confirms the direction already in play and sets a new reference point for the markup that follows.

BOS — a break of structure with the trend — how it is built?

A break requires a close beyond the level of the broken swing; a wick through it does not count — without a close it is a liquidity sweep, not a break. The BOS level is marked on the same level of structure the broken swing belonged to.

BOS — a break of structure with the trend — common mistakes

Counting a wick poke as BOS.

Confusing BOS with CHoCH. BOS runs with the trend, CHoCH against it — these two must never be mixed up.

Marking BOS off a swing from a different level of structure.

Waiting for a BOS with no impulse behind it: a break without force is more often false.

Related to

Glossary

break of structure
price closing beyond the last structure point **in the direction of the trend**. It confirms continuation.
trend
a steady directional move in price.
uptrend
a sequence of higher highs and higher lows.
high
the highest price of the period.
downtrend
a sequence of lower highs and lower lows.
low
the lowest price of the period.

Test yourself

Where is the low higher than the previous one — the uptrend holds?

Correct. The app has tasks like this in every lesson — 119 lessons on real charts. Solve in the app →

Not this one. The right answer is the other chart. The app has tasks like this in every lesson — 119 lessons on real charts. Solve in the app →

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