ICT: market structure (BOS / CHoCH)
The two signals that tell you whether the trend continues or is changing character.
Price moves in swings (successive highs and lows). This indicator marks on the chart the two moments when a candle closes beyond a significant previous high or low.
What it is for
Recognising in real time whether the current move confirms the present direction or reverses it, without having to judge it by eye.
How to read it
- BOS, Break of Structure: price breaks in the same direction as the trend (an uptrend taking out its last high). The trend confirms itself.
- CHoCH, Change of Character: price breaks in the opposite direction (an uptrend that instead closes below its last low). It is the first hint that the character of the market is changing.
Each event appears as a BOS/CHoCH label on the level that was broken.
Parameters
- Swing depth, how “significant” the highs/lows considered must be: higher values = only the major structures, fewer signals.
- Show BOS / Show CHoCH, turn the two types on or off.
- Dashed CHoCH and bull/bear colours, appearance only.
The calculations are deterministic: the same data always produces the same signals, in replay and backtest too.