What is BOS (Break Of Structure)? Price structure break:
This means that the price has broken a significant low or high that represented the previous market trend, and this often indicates a continuation or change of trend depending on the context.
The price structure simply
The market moves in three states:
Uptrend: Higher highs + Higher lows
Downtrend: Lower highs + Lower lows
Range
BOS occurs when:
In the uptrend ➜ Last higher trough is broken
In the downtrend ➜ Last lower peak is broken
Types of BOS
1️⃣ Bullish BOS
The market was making higher highs and lows
Price breaks the last significant peak
Signal for continuing the rise
📌 Used for buying entry after retest
2️⃣ Bearish BOS
The market was making lower highs and lows
Price breaks the last significant trough
Signal for continuing the decline
📌 Very important for short trades
How to trade using BOS?
Best method (Smart Money):
Identifying the overall trend
Waiting for a clear BOS with candle closure
Back to:
OB
or FVG
Entry with the trend
Stop loss behind the last peak/trough
Common mistakes
❌ Considering every BOS break
❌ Entering without candle closure
❌ Ignore the larger time frame
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