Glossary
Break of Structure (BOS)
Price breaking a prior swing high or low in the direction of the trend, confirming it continues.
Break of Structure (BOS), explained
A break of structure (BOS) is when price closes beyond the most recent significant swing point in the direction of the existing trend — a higher high in an uptrend, or a lower low in a downtrend. It confirms the trend is still intact.
BOS is the building block of trend reading in SMC. A series of bullish breaks of structure (each new high taken out) defines an uptrend; a series of bearish ones defines a downtrend. Each break is a fresh piece of evidence that the prevailing side is still in control.
How you confirm the break matters. Many traders require a candle body to close beyond the swing point, not just a wick poking through, because a wick alone is often a liquidity sweep rather than a true continuation. A clean close, ideally on a displaced candle, is far more trustworthy than a marginal one.
It is distinct from a change of character: a BOS continues the existing direction, whereas a CHoCH is the first break that signals the direction may be turning. Reading the two correctly is the difference between adding to a trend and catching its reversal.
On the desk a BOS is the confirmation that lets us trust a setup. After a sweep and a return to an order block, a break of structure in our intended direction tells us the move has resumed and that the trend we are trading with is genuinely continuing.
Frequently asked questions
- What is the difference between BOS and CHoCH?
- A break of structure continues the existing trend (a new high in an uptrend); a change of character is the first break against the trend (a broken higher low), signalling a possible reversal. BOS confirms; CHoCH warns.
- Does a wick count as a break of structure?
- Most traders require a candle body to close beyond the swing point, not just a wick. A wick that pokes through and snaps back is more likely a liquidity sweep than a genuine break of structure.
Related terms
Change of Character (CHoCH)
The first structural break against the prevailing trend — an early signal that momentum may be shifting.
ReadMarket Structure
The sequence of swing highs and lows that defines whether a market is trending or ranging.
ReadTrend
The dominant direction of price — a sequence of higher highs and lows, or lower highs and lows.
ReadDisplacement
A strong, decisive move that signals real intent — the engine behind order blocks and fair value gaps.
Read
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