Lesson 1 — BOS vs CHoCH
Market Structure
Price moves in three states: uptrend, downtrend and range. Each is built from four swing points — Higher High (HH), Higher Low (HL), Lower High (LH) and Lower Low (LL). An uptrend prints HH/HL, a downtrend prints LH/LL, a range prints equal highs (EQH) and equal lows (EQL). A Break of Structure (BOS) is a continuation break in the direction of the trend. A Change of Character (CHoCH) is the first break against the trend and warns of reversal.
Rules
- Mark swing points before anything else — structure is the map, everything else is an entry tool.
- BOS = close beyond the previous HH (uptrend) or LL (downtrend): continuation.
- CHoCH = first break of the last HL (uptrend) or LH (downtrend): potential reversal.
- Higher timeframe structure sets the bias; lower timeframe structure times the entry.
- In a range, expect the EQH/EQL to be swept before a real directional move.
Common traps
- Calling a wick a break — wait for displacement, not a tag.
- Trading lower-timeframe CHoCH against a strong HTF trend.
- Redrawing structure after the fact to justify a losing position.
Key takeaways
- Trend = series of swings, not a feeling.
- BOS continues, CHoCH reverses.
- No structure read = no trade.