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BOS, CHoCH and MSS: what changed?
Three names on one chart? First agree on the event you can see.
Separate continuation from a possible change with a written swing and close rule.
BOS means Break of Structure, CHoCH means Change of Character, and MSS means Market Structure Shift. These names describe swing-break observations; our exercise rules below say exactly what counts. Choose how a swing becomes confirmed. Our exercise requires two lower highs on each side of a swing high; the right-side candles must exist before you use it.
Our BOS means a closing break in the established direction. Our CHoCH flags the first close through the last protected swing against that direction. It is an alert, not a proven reversal.
ICT uses MSS with displacement and context. Communities vary in their wording, so our study definitions are stated explicitly rather than presented as universal terminology.
First draw higher high, higher low, then a close below that low. Add the name afterwards and keep the possibility of a failed break open.
Let’s work through it
- Mark the reference before revealing the outcome.
- Separate continuation from a possible change with a written swing and close rule.
- Record the result and the conditions that would reject the idea.
Let’s use numbers · hypothetical example
Synthetic price 100→110→105→115 then closes 104. It breaks the protected 105 low under our rule; this does not guarantee a downtrend.
Easy mistakes to watch for
- Mistaken assumption: A guaranteed fall to 90.
- Changing the definition after seeing the result.
- Ignoring spread, slippage or the loss limit.
Keep in mind
This is a hypothetical study, not a signal. A chart label cannot identify institutional intentions or guarantee a result; include costs and a predefined loss limit.
Your turn
Hide future candles and mark five swings. Write when each swing first became knowable.
A quick check before we move on
What does the 104 close establish in this exercise?
- Proof that a bank sold.
- A possible structural change to investigate.
- A guaranteed fall to 90.
Check answer
A possible structural change to investigate. The close meets our written change rule, but price can recover.
Sources and further reading
Content reviewed: 29 October 2026
Educational material with hypothetical examples. Trading can cause substantial losses. A course, pattern, stop order or past result cannot guarantee a profit or limit every loss. Practise in simulation and check current rules and product terms in your jurisdiction.
