Break of Structure (BOS)

Break of Structure (BOS) is a Smart Money Concepts (SMC) term that describes the moment when price decisively moves beyond a significant swing high or swing low, confirming the continuation of the current market trend. In an uptrend, a BOS occurs when price breaks above the most recent swing high, signalling that buyers remain in control and the series of higher highs and higher lows is intact. In a downtrend, a BOS below a recent swing low confirms continued seller dominance. A BOS is differentiated from a Change of Character (CHoCH)—a BOS confirms trend continuation, while a CHoCH signals a potential trend reversal. Traders use BOS levels to identify directional bias and plan entries in the direction of the dominant structure.