🧠 Hspec Trading School: BOS vs. CHoCH
How to Identify a True Trend Reversal
One of the most common mistakes when analyzing market structure is confusing a trend continuation with a change of character.
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đŸ”č 1. BOS (Break of Structure)
‱ What is it? Occurs when the price breaks a previous high or low in favor of the current trend.
‱ Meaning: Confirmation of continuity. The momentum is strong, and structure remains intact.
‱ Strategy: Look for pullbacks into points of interest (POI / Order Blocks).
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đŸ”č 2. CHoCH (Change of Character)
‱ What is it? Occurs when the price breaks the last higher low (in an uptrend) or last lower high (in a downtrend).
‱ Meaning: The first warning sign. The dominant trend is losing control.
‱ Strategy: Don't enter out of FOMO; wait for a subsequent BOS in the new direction.
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📌 Golden Rule:
A CHoCH gives you the warning, but a confirmed BOS gives you the entry.
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