Lesson 4
BOS vs CHoCH
Last updated: 2026-09-28
Quick answer
A break of structure (BOS) is when price breaks a swing point in the direction of the current trend, confirming the trend continues. A change of character (CHoCH) is the first break against the trend, an early sign the trend may be reversing.
Comparison table
| Break of structure (BOS) | Change of character (CHoCH) | |
|---|---|---|
| Direction | With the trend | Against the trend |
| In an uptrend | Price closes above the last higher high | Price closes below the last higher low |
| In a downtrend | Price closes below the last lower low | Price closes above the last lower high |
| What it suggests | The trend continues | The trend may be turning |
How traders use them
- •BOS: look for pullbacks to join the existing trend.
- •CHoCH: a warning that the trend may change. Many SMC traders wait for a CHoCH after a liquidity sweep before looking for a reversal entry.
- •Use candle closes, not just wicks, to confirm a break.
How the TebotechSignals engine uses it
After a liquidity sweep, the engine requires a candle close beyond the last swing point in the new direction (the CHoCH) before it looks for a fair value gap entry. No close, no signal. The higher-timeframe trend (4-hour chart) must also agree, or be neutral.
Common mistakes
- •Confusing a wick through a level with a real break.
- •Treating a CHoCH on a tiny timeframe as a reversal of the bigger trend.
- •Forgetting that a CHoCH is a warning, not a guarantee.
Educational content only, not financial advice. Trading forex and gold carries a high risk of loss.