Break of Structure (BOS): Definition, Rules and Examples
A break of structure (BOS) is a continuation signal: price closes beyond the latest swing point in the direction of the prevailing trend.
The rule
- Bullish BOS: a candle closes above the most recent unbroken swing high while structure is bullish (or undecided).
- Bearish BOS: a candle closes below the most recent unbroken swing low while structure is bearish.
Close or wick?
The default is a candle close. A wick beyond the level can be a liquidity sweep rather than a genuine break. A wick-only mode exists as a setting, but it produces more false signals and should be tested before use.
BOS versus market structure shift
| BOS | MSS / CHoCH | |
|---|---|---|
| Direction | With the trend | Against the trend |
| Meaning | Trend continues | Character may be changing |
See MSS vs change of character.
After a BOS
Once a swing is broken it is marked broken, along with any lower swing highs (for bullish breaks). The next unbroken swing becomes the reference, so the same level is never "broken" twice.
Using BOS on gold
- A bullish BOS on H1 in the London session supports looking for long entries on pullbacks into fair value gaps.
- Multiple BOS in one direction confirm trend strength, but late in a move they can also mark exhaustion.
Common mistakes
- Calling every new high a BOS even when the previous swing was not actually broken by a close.
- Ignoring the timeframe: an M1 BOS rarely matters against an H4 trend.
Questions & answers
Does BOS mean I should enter?
No. BOS only describes structure. Entries in a rule-based approach need other conditions such as a retracement to a gap or level and defined risk.
Is a wick beyond a swing a BOS?
By default no; a close is required. Wick breaks are often sweeps. You can switch the structure break mode to wick in settings, at your own testing risk.
How is BOS different from a breakout?
Breakouts usually refer to leaving a range or pattern. BOS is defined strictly against the latest swing in the trend direction.
What happens to a broken swing?
It is marked as broken and no longer used as a reference. The next unbroken swing takes over.