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Break of Structure ContinuationBOS, then a higher low

Evidence: ModerateIntermediateMarket Structure · Continuation

A break of structure is a candle that closes above the previous swing high, in an uptrend. It is a mechanical definition of 'the trend continued' — no more and no less than that.

But the break on its own is not the entry. The entry is the higher low that comes after it, because that is what confirms the break was structural rather than a spike.

Two conditions, both checkable: a close beyond the swing point, then a higher low. Without both, this is a wait.

Category
Market Structure · Continuation
Timeframe
M15 primary · M5 for entry refinement
Suitable pairs
EURUSD · GBPUSD · USDJPY · AUDUSD · XAUUSD
Session
London and New York
Indicators / tools
Swing highs and lows · ATR(14). No indicators.

Valid setup

S31 · BREAK OF STRUCTURE CONTINUATION — VALID SETUP EURUSD · M15 · a BOS is a mechanical definition of 'the trend continued' — nothing more, and nothing less LONG 1.08252 1.08364 1.08476 1.08588 1.08701 1.08813 1.08925 PRIOR SWING HIGH — the level a BOS must CLOSE beyond ENTRY on the resumption close SL below the new higher low +2R reference 1R +2R H HL HH HL BOS HL 1 2 3 4 5 6 ① Structure already reads higher highs and higher lows. ② The most recent swing high is the level that matters. Mark it before anything happens — not after. ③ BOS: a candle CLOSES above it. A wick through is a liquidity event, not a break. ④ The pullback makes a HIGHER LOW. This is what confirms the break was structural rather than a spike. ⑤ ENTRY on the close that resumes ⑥ Continuation until a low fails to hold. 1.08592 1.08528 1.08500 1.08454 BOS higher low

Exact rules

Entry

  • Fix your swing definition first — a three-bar fractal, say: a high with three lower highs either side of it.
  • Mark the most recent swing high, before the break.
  • Break of structure: an M15 candle closes above that swing high.
  • Pullback: price comes back and forms a higher low — above the previous higher low.
  • Trigger: a candle closes above the pullback high. Enter at its close, or at the next bar's open.

Stop loss

  • 0.3 × ATR(14) below the new higher low.
  • If price closes below that low, the structure has changed again — it was not a higher low after all.
  • Risk 0.5%–1%.

Take profit / exit

  • The next structural reference: the previous major swing high, or the session extreme.
  • A minimum of 1:2 measured to the higher low.
  • Structural exit: when a low fails to hold — that is a change of character, the next strategy in this set.

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More from Market structure

Change of Character ReversalCHoCH, then a lower highLiquidity Sweep → Market Structure Shiftthe full sequenceAsian Range Sweep → London MSSthe session's first move

Trading carries risk and most retail accounts lose money. Nothing on this page is financial advice or a recommendation to trade. The chart is an illustration of the rules on constructed candles — it is not a record of a trade and not a backtest.