Trading Basics Ep.3 — Break of Structure (BOS)

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Break of Structure (BOS) happens when price breaks an important previous high or low, confirming potential trend continuation.

In a bullish market:
When price creates HH + HL and then breaks above the previous high → A Bullish BOS occurs.

In a bearish market:
When price creates LH + LL and then breaks below the previous low → A Bearish BOS occurs.

BOS is commonly used to:
✓ Confirm trend continuation
✓ Identify stronger market direction
✓ Improve trade entries
✓ Avoid trading against momentum

A valid BOS usually requires a clear break of structure rather than a small wick or temporary movement.

Understanding BOS helps traders read price action more effectively and build stronger trading decisions.

Simple idea:
Bullish BOS → Buyers remain in control
Bearish BOS → Sellers remain in control

BOS is one of the foundations behind Smart Money Concepts (SMC) and advanced price action analysis.

Trading Basics — Episode 3
Learn structure breaks before moving into market reversals and liquidity concepts.

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