Market Structure

Market Structure — BOS / CHoCH

Automatic detection of Break of Structure and Change of Character

Automatically identifies and labels Break of Structure (BOS) and Change of Character (CHoCH) events on the chart using confirmed swing highs and lows. BOS confirms trend continuation while CHoCH signals a potential trend reversal — core concepts in structural price action. Draws labeled lines at each structural break with configurable style.

Market Structure — BOS / CHoCH on a Sierra Chart

The Concept

Break of Structure (BOS) and Change of Character (CHoCH) are foundational concepts in structural price action analysis. BOS confirms that the prevailing trend is continuing by breaking beyond the prior swing extreme. CHoCH identifies the first counter-trend structural break — the moment when trend character shifts, often the earliest sign of a reversal.

How to Read It

Labeled horizontal lines are drawn at each structural break point on the chart.

  • BOS labels mark trend-continuing structural breaks — the market is following through
  • CHoCH labels mark the first counter-trend break — the trend character may be changing
  • The Swing Length setting controls how significant the structural levels must be
  • BOS Confirmation mode determines whether a close or just a wick is required to confirm the break

Practical Tips

Higher Swing Length values reduce noise but may miss minor structural changes. BOS Confirmation set to Close (default) is more conservative than Wick mode. Use as a framework for understanding trend state, then combine with AMT Balance or divergence studies for precise entry timing. Works on any chart type and timeframe.

Input & Settings

1Swing Length

Number of bars on each side required to confirm a swing high or low. Higher values produce fewer, more significant structural levels. Min: 1, Max: 500. Default: 20.

2BOS Confirmation

Determines how a Break of Structure is confirmed. 0 = Close price must break the level; 1 = Wicks (high/low) can break the level. Default: 0 (Close).

3Show CHoCH

When enabled, the first counter-trend BOS is relabeled as CHoCH (Change of Character) instead of BOS. Default: Yes.

4BOS/CHoCH Line Color

Color of the horizontal line drawn at each structural break. Default: Gray.

5BOS/CHoCH Line Style

Line style for structural break lines. 0 = Solid, 1 = Dash, 2 = Dot, 3 = Dash-Dot, 4 = Dash-Dot-Dot. Default: Dash.

6BOS/CHoCH Line Width

Line width for structural break lines. Min: 1, Max: 10. Default: 2.

7Label Font Size (pts)

Font size in points for the BOS/CHoCH text labels. Min: 6, Max: 24. Default: 8.

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