Chapter 3 of 7

Break of Structure (BOS)

Confirming trend continuation with a close beyond the last swing.

A break of structure (BOS) happens when price breaks a swing point in the direction of the trend. In an uptrend, it's a close above the last swing high. In a downtrend, it's a close below the last swing low. Each BOS confirms that the trend is still in control.

BOSBOSBOSHLHLHLHHEach close abovethe last highconfirms the trend
In an uptrend, every new higher high is created by a break of the previous high. Those breaks are the BOS.

What a BOS tells you

  • The trend is continuing. Buyers (or sellers) had enough strength to take out the last swing.
  • A new swing will form. After a bullish BOS, the low that launched the break becomes the new higher low to watch.
  • Pullbacks are opportunities. Structure traders often wait for a BOS, then look to enter on the pullback that follows.

Close or wick?

This is the most important detail in the chapter. A wick through a swing high shows price traded above it briefly. A candle body closing above it shows the market accepted the higher price. Most structure traders only count a BOS on a body close.

Body close above: BOSWick only: not a BOSA sweep of the high, then rejectionCloses and holds beyond the level
Same swing high, two outcomes. A wick that pokes through and closes back below often marks a liquidity sweep: the subject of Module 5.

The timeframe of the break matters

A BOS on the 1-minute chart and a BOS on the daily chart are very different events. Always say which timeframe you mean: "daily BOS" or "15-minute BOS". A lower-timeframe BOS against the higher-timeframe trend is often just a pullback.

TrendBOS isConfirms
UptrendA body close above the last swing highBuyers still in control; a new higher low forms
DowntrendA body close below the last swing lowSellers still in control; a new lower high forms

Key takeaways

  • A break of structure (BOS) is a break of a swing point in the direction of the trend.
  • In an uptrend, a BOS is a body close above the last swing high; in a downtrend, below the last swing low.
  • A wick through a level without a close beyond it is not a BOS; it is often a liquidity sweep.
  • Each BOS confirms the trend; the pullback after it is usually the better entry.