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.
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 →