What Is a Break of Structure and How Can You Trade It?
In the ever-evolving world of Smart Money Concept (SMC) trading, a nuanced understanding of market dynamics is indispensable. This article explores the concept of Break of Structure (BOS), how to identify it, and its implications for trading strategies, setting traders on a path to more informed decision-making and strategic market navigation.
Strong and Weak Swing Points
In Smart Money Concept trading, understanding the basics of market structure is crucial, particularly when discerning between strong and weak swing points. These points are pivotal in analysing the current trend and play a significant role in identifying potential breaks in structure.
A strong swing point, whether it be a high in a downtrend or a low in an uptrend, is considered to be likely to hold if the price revisits the area. A bullish trend, for example, is denoted by a series of higher highs and higher lows. For the trend to stay intact, the last higher low shouldn’t be traded through.
Conversely, a weak swing point is seen as vulnerable and more likely to be breached. In an uptrend, a peak or area of resistance is expected to be traded through, continuing the trend.
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