Smart Money Concepts

BOS & CHoCH Explained

BOS and CHoCH are labels for structural changes. They can help organize continuation and potential reversal context when used with confirmed swings.

Break of Structure (BOS)

A Break of Structure usually refers to price breaking a prior meaningful swing in the direction of the established trend. In a bullish structure, a break above a prior swing high can support continuation context; in bearish structure, a break below a prior swing low can do the same.

Change of Character (CHoCH)

CHoCH is commonly used when price breaks a swing that challenges the current trend sequence. It is not a guaranteed reversal signal; it is a warning that the previous structural rhythm may be changing.

Why confirmation matters

Intrabar spikes can create false breaks. Many traders therefore wait for a candle close, displacement, or follow-through before treating a break as confirmed.

A break becomes more informative when it aligns with liquidity, volatility, session context and higher-timeframe structure.

Simple workflow

  1. Mark the last confirmed swing high and low.
  2. Identify the current directional sequence.
  3. Wait for a meaningful break, not a tiny wick.
  4. Check whether the break supports continuation or challenges the trend.
  5. Look for retest or follow-through rather than assuming immediate continuation.