Market Structure

Break of Structure

A close beyond the most recent significant swing point that confirms trend continuation.
Also known as: BOSBreak of Structure (BOS)

A Break of Structure (BOS) occurs when price closes beyond the most recent significant swing high (in an uptrend) or swing low (in a downtrend), confirming that the prevailing trend is continuing. In SMC terminology, BOS is the opposite of Change of Character, BOS confirms the existing structure, CHOCH signals a potential reversal.

The key word is "close", intraday wicks that pierce a swing point but close back inside do not constitute a BOS. Traders use BOS as a filter: long entries are only valid in markets showing consistent bullish BOS, short entries in markets showing bearish BOS. The setup loses edge in ranging conditions where BOS signals fire frequently in both directions without follow-through. Higher-timeframe BOS is considered more reliable than intraday signals.

Strategies using Break of Structure

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ICT Unicorn Model
ICT Advanced Models

More Market Structure concepts

Change of Character
The first lower low in an uptrend or first higher high in a downtrend, signaling a potenti…
Market Structure
The sequence of swing highs and swing lows that defines whether a market is trending or ra…
Swing High / Swing Low
A local price extreme, typically a bar with lower highs on both sides (swing high) or high…