Imperial Research CHoCH and BOS
Change of character or break of structure?
Both are breaks of a swing point. A break of structure (BOS) continues the trend. A change of character (CHoCH) is the first break against it, the earliest sign that the trend may be turning.
Checked 3 November 2026
Show the solution
Solution: B. In a downtrend each bounce makes a lower high. B is the first candle whose body closed above the last lower high, so the pattern of lower highs is broken: a change of character. A broke a low in the trend's own direction, which is a break of structure, a continuation. C pushed above the lower high with its wick but closed back below, which is a sweep, not a change.
Cancelled if price closes back below the low that formed before the break.
Illustrative diagram, not market data.
Reading structure
An uptrend makes higher highs and higher lows; a downtrend makes lower highs and lower lows. Mark the swing points on the timeframe you trade. The most important ones are the last swing high and the last swing low, because a close beyond them changes the picture.
CHoCH and BOS side by side
| Break of structure | Change of character | |
|---|---|---|
| Direction | With the trend | Against the trend |
| In a downtrend | Close below the last low | Close above the last lower high |
| In an uptrend | Close above the last high | Close below the last higher low |
| What it suggests | Trend continues | Trend may be turning |
| Typical use | Trail stops, add on pullbacks | Entry trigger after a sweep |
Using a CHoCH as a trigger
The change of character is most useful on a lower timeframe inside a higher-timeframe zone. Price reaches a 4-hour zone, sweeps a small low on the 15-minute chart, then closes above the last 15-minute lower high. That close is your trigger; the entry comes on the pullback into the order block or gap it leaves. The full sequence is in the next study: top-down analysis.
Questions
What is the difference between CHoCH and BOS?
Direction. A BOS breaks a swing point in the direction of the trend (a new lower low in a downtrend). A CHoCH breaks one against the trend (a close above the last lower high in a downtrend).
Does a CHoCH mean the trend has reversed?
Not yet. It is the first sign. A reversal is confirmed when price then makes a higher low and breaks the next high, a BOS in the new direction.
Wick or close?
Use closes. A wick beyond a swing point is often a sweep of the stops there. A body close is a commitment.
What is a market structure shift (MSS)?
Many traders use MSS for the same idea as CHoCH, sometimes with the extra condition that the break comes with displacement and leaves a fair value gap.