A Break of Structure (BOS) occurs when price closes beyond the most recent swing point in the direction of the prevailing trend. In a bullish trend, a BOS is confirmed when price closes above the most recent swing high, making a higher high. In a bearish trend, a BOS is confirmed when price closes below the most recent swing low, making a lower low.
Unlike a Market Structure Shift (MSS), which signals a potential reversal, a BOS confirms that the trend is intact and likely to continue. Traders use BOS levels to trail stops, set partial profit targets, or look for continuation entries on pullbacks to the Fair Value Gap or order block formed during the BOS impulse.
In ICT methodology, each BOS creates a new draw on liquidity — the next swing high (in bullish markets) or swing low (in bearish markets) becomes the next target. Understanding the chain of BOS events on higher timeframes helps lower timeframe traders align their bias correctly.
Logging BOS events in your journal with the timeframe, the strength of the break (impulsive vs. choppy), and the subsequent price action helps you understand when a BOS on your instrument leads to a clean continuation versus a false break followed by a structure shift.