Break of StructureBOS
A break of structure (BOS) usually means price moving beyond the last swing high in an uptrend, or below the last swing low in a downtrend, confirming the trend continues.
A break of structure (BOS) is a term from smart money concepts. In an uptrend it means price moving above the last swing high, and in a downtrend below the last swing low. Traders read it as confirmation that the trend is continuing. Definitions vary between educators.
- Category
- Price Action
- Reading time
- 3 min
- Also called
- Structure break, Trend continuation break
- Updated
Break of structure in plain words
In smart-money-concepts language, an uptrend is a series of higher highs and higher lows, and a downtrend is a series of lower highs and lower lows.1
A break of structure (BOS) is a continuation signal: price takes out a swing high or low in the direction the trend is already moving.2
Reading structure takes practice, and two traders can label the same chart differently.1
How to spot a BOS
Pick a timeframe
Structure depends on the chart you use.
Confirm the trend
Trend direction must be clear (Not Sideways).2
Mark swings
Confirm the trend first: rising highs and rising lows for an uptrend.1
Watch the last swing
Note the last swing high (uptrend) or low (downtrend).
Price breaks it
Mark the BOS when price clears the latest swing in the trend's own direction.2
Plan, don't chase
Many wait for a pullback, since the break only confirms that the trend remains intact.2
Worked examples
Example 1 — Bullish BOS
Uptrend confirmedHypothetical swings: high 105, low 101, then a close at 106.
| Old high | 105 |
| Close | 106 |
Price cleared the last swing high in an uptrend — a textbook continuation signal.2
Example 2 — Pullback entry
R ≈ 2.8After the BOS, price pulls back to 103.50; long with stop 101.90, target 108, 100 units.
| Risk | 1.60 × 100 = 160 |
| Reward | 4.50 × 100 = 450 |
The break only confirms that the trend remains intact; the pullback gives a defined stop.2
Example 3 — Disputed swing
SubjectiveTwo hypothetical traders mark different swing highs on the same chart.
| Trader A | BOS |
| Trader B | No BOS |
Two analysts picked different swing points here, which shows how subjective structure can be.1
BOS vs change of character
| Aspect | BOS | CHoCH |
|---|---|---|
| Direction | With the trend | Against the trend |
| Meaning | Continuation | Possible reversal |
| Level broken | Last swing in trend | Last opposite swing |
| Typical use | Join the trend | Warning sign |
Where BOS is used
Advantages and disadvantages
Advantages
- Gives clear trend-continuation rules.
- Works on any timeframe.
- Pairs well with defined stops.
Disadvantages
- Swing choice is subjective.
- Wick vs close rules differ.
- Late signal after a big move.
- False breaks happen often.
Going deeper
Read as far as you need. Each level builds on the one before it.
Common mistakes
Using minor swings
Define which swings count.
Chasing the break
Wait for a plan.
Ignoring the higher timeframe
Check the bigger trend.
Wick breaks only
Decide on close rules in advance.
Check your understanding
Test yourself before moving on. Each answer comes with an explanation.
Key points to remember
- BOS confirms trend continuation.
- Uptrend: break above the last high.
- Downtrend: break below the last low.
- Swing choice is subjective.
- Use with risk rules.
Frequently asked questions
Is BOS an official term?
Close or wick?
Does it predict the future?
Further learning
Sources
This article is written in our own words. The sources below support the specific facts, rules and figures marked with a number in the text. Links open the original publisher’s page.
- CMC Markets. Smart money concept explained (opens in a new tab) Checked .
- Equiti. MSS vs BOS: a full guide for traders learning market structure (opens in a new tab) Checked .
Educational content, not financial advice. Examples use hypothetical prices and simplified costs; actual fees, margin rules and regulations vary by broker, market and country. We are not affiliated with any publisher linked above. Last reviewed . Report an error or request a source credit.