BOS vs CHoCH: the close matters more than the wick

[Shadow Trader]

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.

[FXS HongKong Scalper]

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.