Lessons
Chart school · Lesson 7

Break of structure (BOS)

A BOS is when price closes beyond the last swing high in an uptrend, or the last swing low in a downtrend. It says: the trend continues.

BOSBOSBOSLHHLHHHLHHHLHH
Each dashed line is a swing high. When a candle closes above it, that is a BOS, and the uptrend is confirmed again.Teaching diagram, not real market data
  • Close, not wick. If only the wick goes above and the candle closes back below, it is a sweep (Lesson 9), not a BOS. That often means the opposite.
  • After each BOS, the higher low that started the move is the level the buyers must protect.
  • A BOS made by a big impulsive candle (displacement) is stronger than one made by small slow candles.
Quick check

In an uptrend, a candle closes above the last swing high. This is…

Only the wick goes above the high, and the candle closes back below. This is…