Market structure is simply the pattern of swing highs and swing lows. In an uptrend, price makes higher highs and higher lows. In a downtrend, it makes lower highs and lower lows. Reading this pattern tells you which side is currently in control.
Break of structure (BOS)
A break of structure is when price closes beyond the last swing point in the direction of the trend. In an uptrend, that means a candle closes above the most recent swing high. It confirms that the trend is still alive.
Change of character (CHoCH)
A change of character is the first break against the trend. In an uptrend, it is the first time price closes below the most recent higher low. It doesn't prove the trend has reversed, but it's an early warning that control may be shifting.
- BOS = continuation. Price breaks the last swing in the trend's direction.
- CHoCH = warning. Price breaks the last swing against the trend.
- Use candle closes, not wicks — wicks through a level are often sweeps.
Using structure on two timeframes
A simple approach is to read the trend on a higher timeframe (like 1 hour) and look for entries on a lower one (like 15 minutes). If the 1-hour chart is making higher highs and higher lows, you mainly look for buys on the 15-minute chart — typically after a sweep of a low and a bullish break of structure.
Structure is a framework, not a signal generator. Combine it with a clear stop loss and fixed risk per trade.