Break of StructureMarket Structure

When price clears a prior swing point in the direction it was already going — and what that does and does not confirm. This free lesson covers: What a break of structure is, A note on the terms, Name it, A close, not a wick, Break, or not?, BOS in a downtrend, Spot it, What a BOS does not tell you, Is it a signal to enter?, Put it together.

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What a break of structure is

prior high
BOS

A break of structure — BOS — is price closing beyond a prior swing point in the same direction the trend was already going.

In an uptrend that means closing above the last swing high. It is continuation: the trend did what a trend is supposed to do.

Going deeper

More on break of structure

BOS terminology comes from the price-action and Smart Money Concepts community and became widespread in the late 2010s. The underlying idea — a trend confirming itself by exceeding its own prior extreme — is much older.

Different sources define it differently. Some require a body close beyond the level, others accept any trade through it. This Academy uses the closing definition throughout, because a rule based on closes can be checked consistently.

Common mistakes

  • Counting wicks as breaks, which turns rejection into a false confirmation signal.
  • Looking for BOS inside a range, where the same levels get crossed repeatedly and none of it means anything.
  • Treating a break as an entry rather than as structural information.

From experience

  • The level that gets broken often becomes relevant again on the retest. Marking it after the break is frequently more useful than the break itself.
  • On US30, be wary of breaks that happen in the first minutes after a major US data release — the move often reverses once liquidity returns.

Questions people ask

Does a break of structure have to close beyond the level?

By the definition used here, yes. Other sources are looser. The closing rule is stricter and produces fewer false signals, which is why it is the one taught.

How is BOS different from a simple breakout?

A breakout usually refers to leaving a range or pattern. BOS specifically means exceeding a prior swing point in an existing trend — continuation rather than a new move.