BOS vs CHoCH: the close matters more than the wick
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Shadow Trader
- Posts: 5438
- Joined: Wed Sep 09, 2026 5:19 pm
BOS vs CHoCH: the close matters more than the wick
Break of structure and change of character get thrown around like they are obvious, but the definition people use decides whether the tool works. My rule: a break counts only when a candle body closes beyond the swing point. A wick beyond it is a sweep, which is a different event with a different meaning. A BOS in the direction of the trend is continuation. A CHoCH is the first break against the prior sequence, for example price making a lower low after a run of higher highs and higher lows, or more commonly the first close below the last higher low that caused the high. The important point is that CHoCH is a warning, not a confirmation. A single CHoCH can easily fail and turn back into the old trend. What strengthens it is context: it happened after a sweep of liquidity, from a higher timeframe zone, with displacement. Without those, it is just a small break. Be strict about closes and your labels will be much more consistent.
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FXS HongKong Scalper
- Posts: 407
- Joined: Sat Oct 24, 2026 10:15 pm
Re: BOS vs CHoCH: the close matters more than the wick
A body close beyond the swing makes the rule testable, which is the main thing. Do you treat a CHoCH on M5 as meaningful when the H1 is still in a clear trend? In my experience the lower timeframe CHoCH against the H1 trend often just marks a pullback, and the trade only works if it lines up with a higher timeframe level.
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