Break of Structure (BOS) in ICT SMC | Order Flow & Liquidity | ICT Smart Money Concepts

Break of Structure (BOS) in ICT SMC | Order Flow & Liquidity | ICT Smart Money Concepts 🔹 What is BOS in ICT SMC? In ICT (Inner Circle Trader) Smart Money Concepts (SMC), a Break of Structure (BOS) occurs when price violates a significant market structure level (either a swing high or swing low). This break signals a potential shift in order flow and is often the first confirmation that institutional traders (Smart Money) are either continuing the trend or reversing the market. A BOS is not just any candlestick break—it must be tied to liquidity runs and market structure. 🔹 Key Points of BOS 1. Trend Identification In an uptrend, BOS happens when price breaks above a previous swing high. In a downtrend, BOS happens when price breaks below a previous swing low. 2. Liquidity Concept Market usually grabs liquidity before a BOS. For example, before an upward BOS, price may run below a short-term low (liquidity grab) and then break above a key high. 3. Confirmation Tool BOS confirms whether the market is maintaining trend or changing direction. A single BOS may suggest continuation, while a BOS against the current trend may suggest a reversal. 🔹 Types of BOS 1. Trend Continuation BOS Confirms that Smart Money is pushing price further in the same direction. Example: Price breaks previous swing high in an uptrend, confirming bullish order flow. 2. Reversal BOS Signals a change of direction when BOS occurs against the existing trend. Example: Market is bullish, but then price breaks a major swing low → possible start of bearish order flow. 🔹 BOS vs CHoCH (Change of Character) Many traders confuse BOS with CHoCH: BOS: Break in the direction of the current trend (continuation). CHoCH: First significant break against the existing trend (reversal signal). 👉 CHoCH often comes before a major BOS in the new direction. 🔹 How to Trade Using BOS 1. Mark Key Swing Points Identify major highs/lows on HTF (Higher Timeframe). 2. Wait for Liquidity Sweep Look for a liquidity run before a BOS. 3. Confirm with BOS Wait for a candle body close above/below structure (not just a wick). 4. Entry Setup After BOS, look for FVG (Fair Value Gap) or Order Block (OB) retracement entries. Stop loss goes below/above the BOS structure. Target next liquidity pool. 🔹 Example Scenario Market is bullish. Price sweeps liquidity below a minor low. Then, price breaks above the previous swing high 》 BOS confirms bullish continuation. After BOS, price retraces into a bullish order block 》 entry opportunity. 🔹 Why BOS Matters in ICT SMC It gives clarity on real trend direction. Filters false breakouts caused by retail traps. Works best with other ICT concepts like FVGs, OBs, Liquidity, and PD Array Matrix. ✨ In short: BOS in ICT SMC is the confirmation tool of Smart Money order flow. It shows whether the market is continuing or reversing, and when combined with liquidity, OB, and FVG, it becomes one of the strongest trade setups. Break of Structure ICT BOS ICT SMC ICT Smart Money Concepts BOS BOS vs CHoCH ICT Market Structure ICT ICT Order Flow Liquidity and BOS ICT ICT BOS trading strategy ICT BOS entry model Smart Money BOS explained #ICT #SMC #BreakOfStructure #BOS #ICTTrading #SmartMoneyConcepts #OrderFlow #Liquidity #CHoCH #ICTStrategy #ForexTrading #MarketStructure #OrderBlock #FairValueGap #PriceAction