BOS (Break of Structure): Confirming Trend Continuation
1. Definition of standard BOS
BOS (Break of Structure) occurs when the price breaks an extreme point of the current trend (Swing High in an uptrend or Swing Low in a downtrend), indicating that the trend is continuing to develop healthily.
2. Criteria for validating BOS
Not every price line that crosses the old peak/bottom is BOS. You should note:
✓ Closing the candle body: The closing candle body (Close) must completely surpass the old high/low. If only the candle's whiskers sweep across and then retract the legs to close inside the structure, that is Liquidity Sweep, not BOS.
✓ Accompanying momentum (Displacement): The ideal breakout should be a large body candle and create a FVG behind to confirm Smart Money's involvement.
📷 Figure 3.1: Breaks of continuation structure (BOS) continuously form when the candle body closes past the old peak in an uptrend on the GBPUSD chart.
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