Posted by This BOS trading approach follows the smart money concept, seeking momentum after key structural breaks rather than predicting reversals.
Trade Logic: Break of Structure (BOS) on sell side.
A Break of Structure (BOS) trade is typically executed when price action decisively breaks a key swing high or low, indicating potential trend continuation or reversal. In the chart provided, several BOS labels are visible, highlighting points where price breached previous swing lows or highs, especially on the 5-minute timeframe.
A BOS occurs when the price closes below a previous swing low (for bearish setups) or above a swing high (for bullish setups), confirming that sellers or buyers have taken control.
This break is often accompanied by increased momentum, as visualized by strong candles and volume spikes.After a BOS, we should generally look for entries in the direction of the break. In the chart, a bearish BOS is followed by a strong downward move, with the entry ideally placed after confirmation—a candle close beyond the broken level and retest/failure to reclaim it.
The chart shows bearish structure breaking multiple support zones (BOS labels), followed by a sell entry near 3,977.7 USD as price initiates a sharp decline.
The logic behind the trade is: once the BOS confirms, a short position is entered anticipating further move towards the next support (marked lower horizontal lines).
The stop-loss is typically placed above the recent high prior to BOS, while the target aligns with the next significant support or demand zone.