what is bos and choch in trading
BOS means Break of Structure and CHoCH means Change of Character in trading. BOS usually signals trend continuation, while CHoCH often signals a possible trend reversal or shift in market behavior.
Simple meaning
- BOS : price breaks a prior swing high in an uptrend or a prior swing low in a downtrend, confirming the trend may still be intact.
- CHoCH : price breaks structure in a way that suggests the current trend is losing strength and may be turning the other way.
Easy example
In an uptrend:
- Price makes higher highs and higher lows.
- If it breaks the previous high again, that is often read as BOS.
- If it instead breaks a key higher low and starts behaving bearish, traders may call that CHoCH.
Why traders use it
- It helps traders read market structure instead of guessing direction.
- It is often used in Smart Money Concept and price action trading.
- It can help distinguish a continuation move from an early reversal signal.
Important note
Different traders and platforms sometimes define BOS and CHoCH a little differently, especially around candle close rules and internal vs external structure. So it is best to use them as confirmation tools, not as standalone signals.
TL;DR: BOS = trend continuation, CHoCH = possible trend change.