Last Updated on August 20, 2026 by Deon
Break of Structure (BOS) is one of the helpful ideas for traders who want to learn how prices move. By only using indicators, traders can look at past highs and lows to see if the market is going in the same direction.
A break of structure happens when prices go past a previous swing high or swing low. This event can give hints about whether the market’s continuing and help traders decide where to enter, where to put stop-loss orders and where to take profits.
But not every time prices go past a high or low is a sign. Traders should think about the trend how much money is moving around how the candles close and what is happening on bigger timeframes before they make a trade.
What Is a Break of Structure?
A break of structure happens when prices go past a point in the current market structure.
In a rising trend prices usually make:
Higher highs
lows
Higher highs again
If prices go above a previous important high traders may see this as a sign that the market is still going up.
In a falling trend, prices usually make:
Lower lows
highs
Lower lows again
If prices go below a previous important low it can show that the market is still going down.
How to Identify Break of Structure
The first step is to find swing points. Small movements inside a candle or small market noise should not be treated as levels.
1. Find the Trend
Start by looking at a time frame. See if the market is mostly going up, going down, or moving sideways.
2. Mark Key Swing Points
Look for highs and lows that the price has respected. These levels are more helpful than every change.
3. Wait for the Price to Cross the Level
A possible BOS happens when the price moves past a swing point. Many traders like to see a candle past the level instead of just a short wick.
4. Look for Signs of Confirmation
Confirmation can come from momentum, a return to the level, movement in liquidity, or matching the bigger time frame trend.
Break of Structure vs. Change of Character
BOS and Change of Character (CHOCH) are similar but not the same.
A break of structure is usually linked with continuation. For example, in an up move breaking a past high can mean buyers are still in control.
A CHOC is usually used to talk about a change in how the market is acting. For example if the market has been making highs and higher lows but then breaks a key low traders might watch for a move down.
The words used can be different in trading groups so traders should focus on what the price is doing instead of only the name.
How Traders Use BOS for Entries
A BOS does not always mean “enter away.” Instead, it can be part of a trading plan.
One way is to wait for the break and then look for a pullback. If the price comes back to the level and shows more buying or selling pressure a trader might consider entering.
For example:
1. The market is going up.
2. The price makes a low.
3. The price breaks the high.
4. The breakout is shown by a close.
5. The price pulls back to the area.
6. The trader looks for clues.
7. A stop-loss is placed based on the trading plan.
This method can help avoid entering when the price jumps after a breakout.
Liquidity and Break of Structure
Liquidity is a part when looking at market structure. Prices may move toward highs or lows because there are orders and stop-losses around these spots.
A trader should ask if the move past a swing point is continuation or just a short-term move from liquidity.
This is especially important around big session starts, economic news and big support or resistance levels.
Common Mistakes
One of the errors is seeing every small price move as a structural break.
Other problems include:
Not looking at the time frame structure
Entering right away without confirmation
Trading every breakout
Putting stops at places
Not thinking about volatility
Using BOS without a plan for managing risk
Risk management is very important because even a setup that looks good can still fail.
Using BOS on MT4 and MT5
Traders can study market structure on both MT4 and MT5 by marking swing highs swing lows, support, resistance, and possible areas where the price might break on the price charts.
Both platforms let traders use timeframes and drawing tools to look at price action. The main thing is not the platform. Having a regular way to find important levels.
Final Thoughts
A break of structure can help traders see if prices are continuing in the direction or if the behavior is changing. The idea becomes more helpful when its used with trend analysis, liquidity, confirmation and good risk management.
Of seeing BOS as a single way to enter a trade traders should use it as part of a full trading plan. Practicing on charts and using a demo account can help build the skill to see real structural breaks, from normal market movement.
*Trading has risk. No way of looking at the market makes sure you will make money.*
