Market Structure

Break of structure

BOS: the trend continues

A break of structure (BOS) happens when a candle closes beyond the last swing in the direction of the trend. It confirms the trend is still going. Wicks do not count: we want a close.

Remember: Draw a line at the last swing. Look for the first candle that closes through it.

Test yourself

Which counts as a bullish break of structure?

A candle closes above the last swing highA break needs a close beyond the swing. A wick that pokes through and closes back inside does not count.

What does a BOS in the direction of the trend tell you?

The trend is likely continuingA BOS confirms continuation. It is information, not an order to trade.

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