Market Structure

BOS

Break of Structure (BOS)

A price break beyond a prior key high or low that confirms continuation of the current trend.

BOS (Break of Structure) is the core SMC signal used to confirm trend continuation. When price decisively breaks above a prior swing high (uptrend) or below a prior swing low (downtrend), a BOS occurs, meaning the market structure still favors the existing direction.

To judge whether a BOS is 'valid', traders usually require the candle to close beyond the structure point, not just wick through it. Waiting for a confirmed close on the relevant timeframe helps filter out false breakouts.

BOS and CHoCH (Change of Character) are paired concepts: BOS signals continuation, CHoCH signals a potential reversal. Many SMC strategies use 'enter on the retracement after a BOS' as a core setup — after the break, price retraces to the broken structure point or a newly formed Order Block before continuing.

A common mistake is treating every minor high/low break as a BOS. In practice, you should first define clear swing structure, confirm the higher-timeframe bias, then look for BOS entries on the lower timeframe — avoiding repeated false reads inside choppy ranges.