Break of structure
Break of structure
Change
Down trend
Break of structure
Change
Down trend
Hh
A Break of Structure (BOS) happens when price decisively breaks a recent swing high or low in the direction of the current trend, confirming continuation. Conversely, a Change of Character (ChoCH) signals a potential trend reversal, such as a shift to a downtrend when a key swing low gives way.
Spotting structural shifts is crucial for prop firm traders. When managing strict daily loss limits and drawdown buffers, misidentifying a continuation for a reversal can quickly wipe out your progress. Always wait for confirmation candles and proper position sizing before entering.
How do you filter out false breaks in your strategy? Share your approach below!