Technical Analysis
BOS — Break of Structure
A candle that closes beyond the most recent swing high or swing low, confirming trend continuation in the direction of the break.
Key rules
- A close (not just a wick) beyond the last swing high/low is required
- Only meaningful in the context of an established trend
- Confirms trend continuation — bias remains with the trend
- Look for entries on the subsequent pullback/retest after the BOS
- BOS followed by a strong retracement may precede a CHOCH
A Break of Structure (BOS) occurs when a candle closes beyond the most recent swing high (in an uptrend) or swing low (in a downtrend). It confirms that the prevailing trend is still intact and that the last swing high/low has been breached.
**Bullish BOS** In an established uptrend (sequence of higher highs and higher lows), a bullish BOS happens when price closes above the prior swing high. This confirms the trend is continuing and the next leg higher is underway.
**Bearish BOS** In an established downtrend (sequence of lower highs and lower lows), a bearish BOS occurs when price closes below the prior swing low. This confirms the downtrend continues.
**BOS vs CHOCH** A BOS confirms trend continuation — it's expected in a trending market. A CHOCH (Change of Character) is the first move against the trend, signalling a possible reversal. Understanding the difference is critical for accurately mapping market structure.
**Trading BOS** Traders use BOS to confirm they are in a trending market and to time entries on pullbacks after the BOS, anticipating the next continuation leg.