Strategy Library

Break of Structure (BOS)

Catch the start of a new trend by waiting for structure to flip.

Break of Structure is when price closes beyond a recent swing high (bullish BOS) or low (bearish BOS), confirming momentum has shifted. Trading the pullback after a clean BOS is one of the most reliable setups in price action.

How to identify it

  1. Find the most recent swing high in a downtrend.
  2. Wait for a candle to CLOSE above it (not just wick).
  3. That's your BOS โ€” bias is now bullish.
  4. Mark the order block that caused the BOS โ€” that's your entry zone on pullback.

Trading rules

  • Don't trade the breakout candle itself โ€” wait for the pullback.
  • SL below the BOS candle's low (bullish) or above its high (bearish).
  • TP at the next major swing or liquidity pool.
  • Confirm with momentum (RSI > 50 on bullish BOS).

Common pitfalls

  • Mistaking a wick spike for a BOS โ€” only candle closes count.
  • Trading every BOS โ€” needs higher-timeframe alignment.
  • Entering too late after the pullback already moved 30+ pips.

When to use it

Works on every timeframe but cleanest on H1 / H4. Combine with session opens for best timing.

Best pairs

XAUUSD, EURUSD, GBPUSD

Best session

London open

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