Break of Structure vs Change of Character (BOS vs CHoCH)
Break of structure (BOS) confirms trend continuation; change of character (CHoCH) signals a potential reversal. Learn the difference and how to use both in Smart Money Concepts.
The short answer
A break of structure (BOS) is price closing beyond a previous swing point in the direction of the trend - it confirms continuation. A change of character (CHoCH) is the first break against the trend - it warns of a possible reversal. BOS says the trend is intact; CHoCH says the trend may be ending.
Break of structure (BOS)
In an uptrend, price makes higher highs and higher lows. Each time price closes above the prior higher high, that is a bullish break of structure - confirmation the uptrend continues. In a downtrend, a close below the prior lower low is a bearish BOS. BOS is your trend-continuation signal and tells you which direction to look for entries.
Change of character (CHoCH)
A change of character is the first time price breaks structure against the prevailing trend. In an uptrend, that means price breaks below the most recent higher low instead of making a new higher high. It does not guarantee a reversal, but it is the earliest structural warning that momentum has shifted, and it often follows a liquidity sweep of the highs.
How traders use them together
A typical SMC sequence is: trend in place (confirmed by BOS), liquidity sweep at an extreme, then a CHoCH that flips structure. The CHoCH is the trigger to start looking for entries in the new direction, usually from a fresh order block or fair value gap. BOS then confirms the new trend as it develops.
Learn this in the free library
See bos vs choch taught and traded live in these free courses:
Frequently asked
Does a CHoCH always lead to a reversal?
No. A change of character is an early warning that momentum has shifted, not a guarantee. It is strongest when it follows a liquidity sweep and is confirmed by a subsequent break of structure in the new direction.
Is BOS bullish or bearish?
A break of structure can be either. A bullish BOS is a close above a prior higher high in an uptrend; a bearish BOS is a close below a prior lower low in a downtrend. In both cases it confirms trend continuation.
Related concepts
Trade this with the community
Learn the concept for free, then see it traded live with realtime ideas and mentorship in the FOMO Trading community.