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Collectible card · Common

Break of Structure (BOS)

A candle closes beyond the last swing in the direction of the trend: an uptrend makes a new higher high, a downtrend a new lower low.

1.284541.294611.304681.314751.32482LLLHLLLHHHHLLHLLBOSDecision pointWhat happened next →
Real example: EUR/USD, 15-minute chart, 2010-08-11. Zones detected automatically with Candlemind's rules, using only the candles before the decision point.

Why it works

It confirms the trend is still alive: buyers (or sellers) had enough strength to push through the previous extreme.

How to use it

After a bullish BOS, wait for price to pull back into the zone that caused the break (an FVG or order block) and look for a buy there.

The typical mistake

Buying the breakout candle itself, at the top of the move, with the stop far below.

FAQ

What is BOS in trading?

A candle closes beyond the last swing in the direction of the trend: an uptrend makes a new higher high, a downtrend a new lower low.

How do you trade BOS?

After a bullish BOS, wait for price to pull back into the zone that caused the break (an FVG or order block) and look for a buy there.