BOS / CHoCH (Break of Structure, Change of Character)

The BOS (Break of Structure) is a break of structure in the direction of the trend: in an uptrend, a close above the last high; in a downtrend, a close below the last low. The trend continues. The CHoCH (Change of Character) is the first break against the trend: in an uptrend, a close below the last higher low, the one that launched the last high. It is the first sign of a reversal, not its confirmation: a bounce that fails must follow, then a BOS in the new direction. ICT calls the same event MSS (Market Structure Shift); the price action course speaks of MSB (Market Structure Break). Two rules rule out most false signals: the break is judged on the close, never on the wick, and on a major swing of the timeframe being read — a wick that pierces a low and then re-enters is most often a stop hunt. Real or fake CHoCH, confirmation with the CVD and open interest: the complete guide.