SMC Term — Structure
What is BOS?
Break of Structure
BOS — Break of Structure
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A Break of Structure (BOS) occurs when price breaks a previous significant high (bullish BOS) or low (bearish BOS). It confirms a continuation of the current trend direction. A bullish BOS forms when price closes above a previous swing high, signaling that buyers are in control. A bearish BOS forms when price closes below a previous swing low, signaling sellers dominate.
How to Trade BOS
In Smart Money Concepts, BOS is used to confirm trend bias before looking for entries. After a bullish BOS, traders look for pullbacks into Order Blocks or Fair Value Gaps to enter long. After a bearish BOS, they look for retracements into bearish OBs or FVGs to enter short. BOS should always be preceded by a clear impulse move with momentum, not a slow grind.
Real Example — XAUUSD
Example: XAUUSD is in an uptrend making higher highs. Price pulls back, then breaks above the last swing high at 3310.00 — this is a Bullish BOS, confirming the uptrend continues. Look for entries on the next pullback into the nearest FVG or OB.
Related SMC Terms
Frequently Asked Questions
What is BOS in trading?
BOS stands for Break of Structure. It occurs when price breaks a previous significant swing high (bullish BOS) or swing low (bearish BOS), confirming that the current trend is continuing. It is one of the most fundamental concepts in Smart Money Concepts trading.
What is the difference between BOS and CHoCH?
BOS confirms trend continuation by breaking in the direction of the current trend. CHoCH (Change of Character) signals a potential reversal by breaking against the trend. In an uptrend, a bearish BOS below a swing low becomes a CHoCH — the first warning of a possible trend change.
How do you trade a BOS in SMC?
After a bullish BOS, wait for price to pull back into the nearest Fair Value Gap or Order Block that was created during the BOS impulse. Enter long from that zone with a stop loss below the FVG/OB. Target the next significant swing high or BSL level above.
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