Break of structureBOSIntermediate
A candle closing beyond the last swing high (bullish) or swing low (bearish) in the direction of the trend.
What it means
A break of structure confirms that the current trend is continuing. In an uptrend, a close above the last swing high is a bullish BOS.
Many traders wait for a BOS before looking for an entry, so they only trade with confirmed momentum.
How to spot it
- Find the most recent swing high (or low).
- Wait for a candle to close beyond it, not just a wick.
Common mistakes
- Counting a wick through the level as a break.
- Treating every small break on a 1-minute chart as meaningful.
How WickCheck tests it
Buy on a bullish break of structure when price is above the 200 EMA. Sell on a bearish break of structure when price is below the 200 EMA. Stop at 2x ATR. Target 2R.
Open these rules in WickCheck, change any word and run them in seconds. No code.
Full results on 5 markets: Break of structure backtest.
What it looks like on a real chart
Picked automatically from the backtest on real data: the latest winner and the latest loser. The numbered circles are the steps of the rules, in order. Losers are part of every strategy.
Related terms
What a mechanical test can and cannot tell you about smart money concepts.
Education only, not financial advice. Definitions vary between teachers; these are ours, written for clarity.