Break of Structure (BOS)

BOS (Break of Structure) is a break of the last local extreme in the direction of the current trend, with price closing its candle body beyond that level. A BOS confirms that structure is continuing: in an uptrend price makes a higher high, in a downtrend a lower low, and the initiative stays with the prevailing side.

Unlike a Change of Character (CHoCH), a BOS doesn't reverse the trend — it certifies its development as the market continues and seeks new liquidity. Once structure is broken and confirmed, the zone between the pivot low and high becomes the working range for further analysis.

A break of structure is read as a continuation of the trend: price makes a new extreme in its direction and closes its candle body beyond it, after which structure keeps developing. The Trade Model indicator marks confirmed breaks of structure and the boundaries of the resulting ranges automatically.