Smart Money terms explained: BOS, CHoCH, FVG, OB

Updated: 7 November 2026

In short: BOS — a break of structure with the trend; CHoCH — the first break against the trend; OB (order block) — the last candle before an impulse; FVG (imbalance) — a stretch price moved through too fast; EQH and EQL — equal highs and lows with stops behind them.

Structure

A swing is a local turning point. HH and HL — higher high and higher low (uptrend); LH and LL — lower ones (downtrend). BOS confirms the trend; CHoCH signals a possible reversal. POB is the last extreme that failed to make a new high or low; breaking it against the trend gives the CHoCH.

Liquidity

Liquidity is a cluster of stops and orders. A sweep pokes through a level and returns. Inducement is bait: a minor level price takes out before moving to the real zone.

Zones

Order block, breaker (a broken order block that now works the other way), imbalance (FVG), premium and discount — the upper and lower halves of a range.