Start with market structure
Both terms build on market structure: an uptrend makes higher highs and higher lows, a downtrend makes lower highs and lower lows.
Break of structure (BOS)
A BOS happens when price breaks a swing point in the direction of the trend. In an uptrend, closing above the last higher high is a bullish BOS; in a downtrend, closing below the last lower low is a bearish BOS. It means the existing trend made a new extreme.
Change of character (CHoCH)
A CHoCH is the first break against the trend. In an uptrend, price falling below the last higher low is a CHoCH; in a downtrend, price rising above the last lower high is a CHoCH. It shows the pattern of swings has changed — the earlier trend is no longer intact.
BOS vs CHoCH at a glance
- BOS: break with the trend → the trend continued.
- CHoCH: break against the trend → the trend's pattern was broken.
Things to keep in mind
- Whether a candle's close or only its wick must cross the level differs between traders — be consistent.
- Breaks on short timeframes happen often and many reverse quickly.
- These labels describe what happened on the chart; they are not buy or sell signals and do not guarantee the next move.