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.
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.