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Break of Structure and Change of Character Explained (BOS & CHOCH Trading Guide)
Quick Answer
Break of structure (BOS) signals trend continuation when price breaks the previous swing high or low. Change of character (CHOCH) signals a potential trend reversal—it's the first break against the established trend. These two concepts can turn messy, subjective trend reading into clear, mechanical signals that help you identify when trends are continuing or changing.
Video Chapters
- Introduction
- What Are BOS, CHOCH, and MSS?
- Break of Structure (BOS) Explained
- Finding BOS in Real Markets
- Change of Character (CHOCH)
- BOS and CHOCH in Downtrends
- Market Structure Shift vs CHOCH
- Key Takeaway Summary
- Live Chart Example
💡 Click any timestamp to jump to that section in the article below.
Key Takeaways
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Break of Structure (BOS) signals trend continuation—it occurs when price breaks the previous swing high (uptrend) or swing low (downtrend).
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Change of Character (CHOCH) is your early warning signal that a trend may be reversing—it's the first meaningful break against the established trend.
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A CHOCH alone doesn't confirm a trend reversal. You need a BOS in the new direction after the CHOCH to confirm the trend has actually changed.
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Market Structure Shift (MSS) is essentially the same as CHOCH—most traders use these terms interchangeably.
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BOS and CHOCH are all you need. These two signals can turn messy, subjective trend reading into clear, rules-based analysis.
BOS signals trend continuation (red arrows up). CHOCH signals the first break against the trend—an early warning of potential reversal.
Frequently Asked Questions About BOS and CHOCH
What is break of structure (BOS) in trading?
Break of structure (BOS) is a signal that indicates trend continuation. In an uptrend, BOS occurs when price breaks above the previous swing high. In a downtrend, it occurs when price breaks below the previous swing low. It confirms that the existing trend is still intact and continuing.
What is change of character (CHOCH)?
Change of character (CHOCH) is the first meaningful break against an established trend. It serves as an early warning signal that the trend may be reversing. For example, in an uptrend, CHOCH occurs when price breaks below the previous swing low for the first time.
What is the difference between BOS and CHOCH?
BOS signals trend continuation (price breaking with the trend), while CHOCH signals a potential trend change (price breaking against the trend). Think of BOS as confirmation that your trend is healthy, and CHOCH as a warning that something may be shifting.
Is market structure shift (MSS) the same as CHOCH?
Yes, for most traders market structure shift (MSS) and change of character (CHOCH) mean the same thing. Both terms describe the first significant break against an established trend. The terminology can vary between trading communities, but the concept is identical.
Does CHOCH guarantee a trend reversal?
No, a change of character alone does not guarantee a trend reversal. CHOCH is only an early warning. To confirm an actual trend change, you need to see a break of structure (BOS) in the new direction after the CHOCH. Without that confirmation, the original trend may resume.
How do I identify BOS and CHOCH on real charts?
First, identify the swing highs and lows of the current trend. In an uptrend, you need higher highs and higher lows. BOS occurs when price makes a new high. CHOCH occurs when price breaks below the most recent swing low. Real charts can be messy, so focus on the significant swing points rather than minor fluctuations.
Can I use BOS and CHOCH for any timeframe?
Yes, BOS and CHOCH concepts work on any timeframe—from 1-minute charts to monthly charts. However, higher timeframes typically provide more reliable signals with less noise. Many traders use higher timeframes to identify the overall trend and lower timeframes for entry timing.
Test Your Knowledge: BOS and CHOCH Quiz
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Disclaimer: This content is for educational purposes only and should not be considered financial advice. Trading and investing involve substantial risk of loss. Past performance does not guarantee future results. Break of structure and change of character are analytical concepts, not trading guarantees. Always conduct your own research and consider your financial situation before making any investment decisions.
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