What is a break of structure (BOS)?

Market structure is the sequence of swing highs and lows. In an uptrend price makes higher highs and higher lows. Each time a candle closes above the previous swing high, the trend has broken structure again — that close is the BOS.

In SMC teaching a BOS is a continuation signal: it tells you the trend is still in force and the last higher low is now the level to defend. The pullback after the break is where many traders look for an entry, often at an order block or fair value gap left by the breaking move.

Each close above the previous swing high is a break of structure. The higher low between the breaks is the level the trend has to hold.

The example in numbers

Entry (long)	1.08480 — the pullback after the first break
Stop	1.08400 — 2 pips below the higher low (8 pips)
Target	1.08700 — the next high (22 pips)
Reward to risk	2.75R · breaks even at a 27% win rate

EURUSD prices from the chart above (Break of structure), entry at 1.08480. At 2.75R, this setup needs to win more than 27% of the time to make money before costs. Try your own levels in the risk/reward calculator.

Break of structure: how to spot it

Mark the swing highs and lows on your timeframe so the trend is clear.
Wait for a candle to close beyond the most recent swing high (uptrend) or low (downtrend).
Mark the swing that was broken; the higher low before it is now protected.
Plan entries on the pullback, with the stop below the protected higher low.

Definitions differ

The main disagreement is wick or body: some count any trade beyond the swing, most SMC courses want a candle body to close beyond it. Traders also differ on which swings count — every small swing, or only the ones that took liquidity.

Common mistakes

Counting a wick as a break
A wick beyond a swing that closes back inside is more often a liquidity sweep than a break of structure.
Mixing timeframes
A 5-minute BOS inside a 4-hour pullback is a different trade from a 4-hour BOS. Note the timeframe you marked it on.
Chasing the breaking candle
The break confirms the direction; the entry is usually on the pullback. Buying the breaking candle puts the stop far below and the R gets small.

Your win rate on BOS

A definition does not tell you whether your BOS trades pay. Your own record does: in the journal, open a trade from MT4 or MT5 and press the key of BOS under Entry criteria — the most used criteria get keys 1–9.

Reports then show BOS by itself: trades, win rate without breakeven trades, average R and P&L, and BOS in each ICT killzone, which is set on every trade by itself. Combinations such as BOS with another criterion appear once they have 15 trades, so a lucky streak does not look like an edge.

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Questions

›What is the difference between BOS and CHoCH?

A break of structure goes with the trend and confirms it. A change of character is the first break against the trend and hints at a reversal.

›Does a break of structure need a candle close?

Most SMC traders require a body close beyond the swing. A wick through it is often treated as a liquidity sweep instead.

›What is a market structure shift (MSS)?

ICT’s term for a break that changes the direction, close to what SMC courses call a change of character, usually with displacement and a fair value gap.