JoymistaWhat Is Market Structure, BOS and CHoCH?
Market structure is the order of highs and lows: higher highs and lows in an uptrend, lower ones in a downtrend. BOS is a break that confirms the trend continuing; CHoCH is the first break against it.
Explained
In an uptrend, breaking above the last high is a break of structure (BOS). Breaking below the last higher low is a change of character (CHoCH), the first sign the trend may turn. These breaks are usually read on closes, not just wicks.
Example
Example with made-up numbersRising lows at 100 then 105, highs at 110 then 115. A close above 115 is a bullish BOS; a close below 105 is a bearish CHoCH.
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Open in JoymistaEducational content, not investment advice.