What is BOS (break of structure)?
BOS (tuzilma buzilishi)
In short
Price breaks the previous high (in an uptrend) or low (in a downtrend) in the trend's direction — confirming the trend continues.
Also known as: break of structure
A BOS (break of structure) is price taking out the previous significant high (in an uptrend) or low (in a downtrend) in the direction of the trend. It confirms the trend is still intact.
How to spot it
- Mark the market structure on the chart: HHs and HLs in an uptrend.
- Watch the last HH level.
- If a candle closes above that level — BOS. A wick that pokes through and returns is not a BOS; it is often a liquidity sweep.
In a downtrend it's mirrored: a close below the last LL is a bearish BOS.
Why it matters
After a BOS, price often pulls back and forms a new HL. Many traders look for entries on that pullback — for example on a retest of the broken high or a return to the order block before the move. A BOS is also a cue to trail the stop: once a new HL forms, the stop can move below it.
Limitations
A BOS does not guarantee continuation — it only shows structure is intact for now. On low timeframes BOSs are frequent and noisy. BOSs late in a trend are often weak.
BOS — the previous high was broken, the trend continues. CHoCH — the last HL broke: structure changed, the uptrend is in doubt.
LH/LL is a downtrend, each new LL is a BOS. Price closed above the last LH ($114.6) — a CHoCH. Entry after the first HL ($112.4) at $114, stop $112, target the earlier LH at $118.4: risk $2, reward $4.4 (2.2R).
Example
A fictional stock in an uptrend: last high (HH) $116, last low (HL) $109.
- Case 1: a candle wicks up to $116.40 but closes at $115.20 — not a BOS, the close is below the level.
- Case 2: a candle closes at $117.50 — BOS, the trend continues.
After the BOS, price pulls back to $113 and turns up — a new HL at $113. A trader holding a long can move the stop from below $109 to below $113, cutting the risk.
Mistakes and tips
Confirm a BOS only with a close; a wick break can be a trap.
Don't chase the moment a BOS happens — waiting for the pullback usually gives better risk/reward.
A lower-timeframe BOS against the higher-timeframe structure is a weaker signal.
Frequently asked questions
- What is the difference between BOS and CHoCH?
- A BOS breaks in the trend's direction and confirms continuation. A CHoCH is the first break against the trend and hints at a possible reversal.
- Should I buy right after a BOS?
- Not necessarily. Many traders wait for a pullback and a new low to form, which lets them place a tighter stop.
Learn it in the Academy
This term is covered with hands-on examples and a quiz in these lessons of the interactive course.
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