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Market Structure: BOS vs CHoCH (Simple Guide)

Market structure is the fastest way to stop “guess trading.” Learn BOS vs CHoCH once, and you’ll know when to follow trend and when to reduce bias.

Published: February 14, 2026 • Last updated: February 14, 2026 • Reading time: ~9 minutes
Market structure diagram showing BOS and CHoCH.
BOS = continuation. CHoCH = potential shift. Context decides what matters.
Pillar guide • Core framework page. See all pillars: Trading pillar guides.
Quick steps (30 seconds)
  1. Pick your timeframe (example: 15m/1h) and keep structure consistent.
  2. Label swing sequence: HH/HL (up), LL/LH (down), or range.
  3. Mark the last BOS (continuation) and last CHoCH (warning).
  4. Build two scenarios: continuation vs shift, each with trigger + invalidation.
Quick definition: structure = the sequence of swings. BOS confirms the trend. CHoCH warns the trend may be changing.
Reality check: this doesn’t “predict.” It gives you clearer scenarios and invalidation.

Start with the basics: HH/HL vs LL/LH

  • Uptrend: higher highs (HH) and higher lows (HL)
  • Downtrend: lower lows (LL) and lower highs (LH)
  • Range: repeated highs/lows without clear progression

The biggest mistake is switching timeframes mid-thought. Choose your execution timeframe first (for example 15m/1h) and keep structure consistent.

What BOS means (continuation)

BOS (break of structure) is a continuation event: price breaks a prior swing in the trend direction. In an uptrend, BOS is a break of the prior swing high. In a downtrend, BOS is a break of the prior swing low.

  • Use BOS to stay with the trend and avoid fading strength.
  • After BOS, look for pullback into a key level or structure flip.

What CHoCH means (potential shift)

CHoCH (change of character) is the first sign the market may be changing behavior. It’s often a break of the most recent internal swing in the opposite direction. It’s not a guaranteed reversal—it’s a warning.

  • CHoCH is a cue to reduce bias and build two scenarios.
  • Confirmation usually comes later (for example: a full structure flip + acceptance).

Turn structure into a plan (two scenarios)

Here’s a simple template you can reuse:

  • Bull plan: if price holds above the flipped level, trigger → continuation target → invalidation below the zone.
  • Bear plan: if price accepts back below the flip, trigger → downside target → invalidation above the zone.

A prompt for AI structure analysis

Analyze this chart screenshot for market structure.

1) Timeframe I execute: [fill in]
2) Identify the current structure (HH/HL, LL/LH, or range)
3) Mark the last BOS and the last CHoCH (if any) and what they imply
4) Build bull + bear scenarios with trigger + invalidation.

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