2. Break of Structure (BOS): Confirming Institutional Trend Continuation

A Break of Structure (BOS) occurs when price breaks beyond a prior major swing high in an uptrend (or below a prior major swing low in a downtrend), signaling the continuation of the dominant trend.

Crucially, institutional traders require a full Candle Body Close beyond the prior swing level on the relevant timeframe. If a candle merely pierces the prior high with a wick and closes back inside, it is NOT a BOS—it is a liquidity sweep that often leads to an aggressive reversal.

Each valid BOS establishes a new 'Protected Swing Low'. In an uptrend, this swing low is protected because if smart money is defending their long positions, price should not trade below it.