Glossary
Break of structure BOS
In short
A break of structure (BOS) is a candle close beyond the last swing high in an uptrend or beyond the last swing low in a downtrend. It confirms that the trend continues.
Close, not wick
Most definitions only count a break on a candle close. If a wick runs through the level but the candle closes back on the other side, that is closer to a liquidity sweep than to a break.
Not every break holds
Some breaks run on, others are reversed within a few candles. That is why AE Market Structure rates every break by quality and shows how often breaks of that quality held in the past.
BOS or CHoCH?
A BOS breaks in the direction of the trend. The first break against the trend is called a change of character (CHoCH).