What is Break of Structure (BOS)?

Price closing beyond the previous swing in the trend's direction — structural confirmation that the trend continues.

A Break of Structure (BOS) occurs when price moves beyond the most recent significant swing point in the direction of the existing trend — above the last swing high in an uptrend, or below the last swing low in a downtrend. It is the market's way of confirming that the side in control is still in control: buyers were strong enough to print a new higher high, or sellers strong enough to print a new lower low. Each BOS extends the trend by one structural leg.

The detail that separates a clean BOS from a trap is how price breaks the level. A confirmed BOS should come with a decisive candle close beyond the swing, ideally with displacement — an impulsive move that leaves an imbalance behind. A mere wick through the level is more often a liquidity sweep than a continuation signal. In the Smart Money Concepts framework we teach, a BOS tells you which direction to look for trades; the pullback into the zone that caused the break is where the entry is actually found.