Break of Structure ContinuationBOS, then a higher low
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
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.
Build Break of Structure Continuation
Reading this page is free and always will be. Taking it is what costs — the complete MQL5 for the rules above, yours to keep, permanently. Five of them cost $10 and they never expire.
More from Market structure
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.
