BOS and CHoCH without guessing

4 min · 6 steps

1. Step 1 · BOS

   BOS: a close broke past the previous high, in the trend's direction.

   BTC 4h: on Oct 18 a candle closed above 68 424, on Oct 20 above 69 000. Two BOS's in a row: buyers are driving price.

   BOS Oct 18

   68 735

   BOS Oct 20

   69 032

   last HL

   68 010

   BOSCHoCHBOS down

2. Step 2 · CHoCH

   CHoCH: a close broke below the last HL for the first time.

   Oct 21: a candle closed at 67 341, below the 68 010 HL. Buyers stopped holding the lows.

   A CHoCH ends trend-following longs. It's too early to short off it.

   BOSCHoCHBOS down

3. Step 3 · Confirmation

   A BOS down confirms the shift.

   Oct 23: a close at 66 414, below the 66 571 low. Price set a new lower low, and structure turned down.

   BOSCHoCHBOS down

4. Step 4 · Trap

   A wick dipped below the HL, but there's no CHoCH yet.

   SOL 1h, Jun 9, 2023: the 07:00 candle wicked below the 18.56 HL to 18.47 but closed at 18.59. At 11:00, a BOS up: the trend is alive.

   HL

   18.56

   wick

   18.47

   close

   18.59

   HLwickBOS

5. Step 5 · Find it yourself

   Where's the CHoCH?

   BTC 1h, the uptrend structure is marked. Tap the candle that gave the CHoCH.

   Practice on the chart

   This is a Find it yourself task: tap a candle or a level, and the lesson tells you right away if you got it.

   Create an accountThis step unlocks after sign-up. Your progress is saved.

6. Step 6 · Recap

   A body close is what tells BOS and CHoCH apart.

   1

   BOS

   ›

   2

   CHoCH

   ›

   3

   BOS down

   recap

   BOS: a close beyond the previous high or low with the trend. CHoCH: the first close against the trend. Both count by the body, a wick doesn't.

   Nothing from here goes into your Pact: entering after the shift is the next lesson, “MSS only after confirmation.”