Break of structure vs change of character (BOS vs CHoCH)
Market structure is the backbone of smart money trading, and two terms come up constantly: a break of structure (BOS) and a change of character (CHoCH). One says the trend is continuing; the other says it might be ending. Get them confused and you’ll be selling the strongest part of an uptrend.
Market structure in one minute
An uptrend makes higher highs (HH) and higher lows (HL). A downtrend makes lower highs (LH) and lower lows (LL). Everything else follows from those swing points.
What is a break of structure (BOS)?
A BOS happens when price closes beyond the last swing point in the direction of the trend: above the last high in an uptrend, below the last low in a downtrend. It confirms the trend is still in charge. BOS points are where trend traders look to join, usually on the pullback that follows.
What is a change of character (CHoCH)?
A CHoCH is the first close against the trend through the swing point that was holding it up: below the last higher low in an uptrend, or above the last lower high in a downtrend. It’s the first crack. It doesn’t guarantee a reversal, but it tells you the old trend has lost its grip and you should stop looking for trades in its direction.
| BOS | CHoCH | |
|---|---|---|
| Direction | With the trend | Against the trend |
| What breaks | The last high (uptrend) or low (downtrend) | The last higher low (uptrend) or lower high (downtrend) |
| What it suggests | Trend continuing | Trend may be reversing |
| How traders use it | Join the trend on the pullback | Stop trading the old trend; watch for the new one |
Three rules that keep it objective
- Closes, not wicks. A wick through a high that closes back inside is often a liquidity sweep, not a break. Only count a candle body closing beyond the level.
- Define your swings. For example, a swing high is a candle with a lower high on each side (two each side is common). Write it down, so you mark the same points every time.
- Match the timeframe. A CHoCH on M5 inside an H4 uptrend is just a pullback on the bigger chart. Decide which timeframe sets your bias.
Where CISD fits in
A CHoCH needs a swing point to break, so it can come late. A CISD (change in state of delivery) uses the open of the last run of candles instead, so it usually confirms a turn earlier, often right after a liquidity sweep. Many traders use the sweep and CISD for the entry, and the CHoCH as extra confirmation. See what is CISD.
Putting it together
- Set your bias from the higher timeframe’s structure (the last BOS).
- Wait for price to pull back into a level that matters: an order block, a fair value gap, or swept liquidity.
- On the lower timeframe, look for the CHoCH (or CISD) back in the direction of your bias.
- Stop beyond the swing that was swept, target the next liquidity.
Let MetaTrader mark the structure
TTL Smart Money Pro finds liquidity sweeps, FVGs, CISD, order blocks, breakers and equal highs and lows on MT4 and MT5, using close-based rules like these, and draws the entry, stop and target.
See Smart Money ProFrequently asked questions
What is the difference between BOS and CHoCH?
A BOS is a close beyond the last swing in the direction of the trend, confirming it. A CHoCH is the first close against the trend through the swing that was holding it, warning that it may reverse.
Does a wick count as a break of structure?
Most traders only count a candle close. A wick that closes back inside is often a liquidity sweep.
Is CHoCH the same as a market structure shift?
The terms are often used for the same idea: the first break of structure against the trend. Some traders reserve market structure shift for a CHoCH with strong displacement.
Which comes first, CISD or CHoCH?
Usually CISD, because it breaks the open of the last run of candles rather than a swing point, which is normally further away.
Educational content only, not financial advice. Trading carries a high level of risk and you can lose more than you expect. Examples use illustrative prices.