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Break of structure (BOS)

What it means when price closes beyond the last swing, and why Pulse rewards or penalizes it.

A break of structure happens when price closes beyond the most recent confirmed swing high or swing low. A close above the last swing high is a bullish break. A close below the last swing low is a bearish break.

A break matters because it changes what the market has proven. In an uptrend, the last swing low is the level buyers defended. If price closes under it, the sequence of higher lows has failed.

Market Pulse adds points when a bullish break is recent, within about 20 days, and removes points when a bearish break is recent, within about 10 days. Breaks are measured on closes, not wicks, which filters out brief spikes through a level.

Frequently asked questions

Is a break of structure a buy or sell signal?

No. It is evidence that the trend has changed character. Pulse uses it as one input to the score, together with trend, momentum and position in the range.

Why closes and not wicks?

A wick can pierce a level and be rejected within the same candle. A close beyond the level means the market accepted prices there.

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