# Break of Structure vs Change of Character in Trading

> Understand the difference between Break of Structure (BOS) and Change of Character (ChoCH) in SMC trading, and how to log both in your trading journal.

**URL:** https://traderjournal.app/smc-ict/break-of-structure-bos-vs-change-of-character-choch

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# Break of Structure vs Change of Character in Trading

Two of the most important concepts in Smart Money Concepts market structure analysis are Break of Structure (BOS) and Change of Character (ChoCH). Knowing which you are trading changes your entry timing and expectation.

## Break of Structure (BOS)

A BOS occurs when price breaks through the previous swing high (in an uptrend) or previous swing low (in a downtrend), confirming that the existing trend is continuing.

**In an uptrend:** BOS = price makes a new higher high above the last swing high.
**In a downtrend:** BOS = price makes a new lower low below the last swing low.

BOS signals **trend continuation**. Traders use it to enter in the direction of the trend after a pullback.

## Change of Character (ChoCH)

A ChoCH occurs when price breaks structure in the *opposite* direction of the current trend — the first sign that the trend may be reversing.

**In an uptrend:** ChoCH = price breaks below the last swing low (instead of making a higher high).
**In a downtrend:** ChoCH = price breaks above the last swing high.

ChoCH signals **potential trend reversal**. It is an early warning, not confirmation.

## Key Differences

| | BOS | ChoCH |
|---|---|---|
| Signal type | Trend continuation | Possible reversal |
| Risk level | Lower (with trend) | Higher (counter-trend) |
| Follow-up expectation | New swing in trend direction | Watch for structure shift |
| Stop placement | Below/above the pullback | Tighter, above/below ChoCH candle |

## How to Journal BOS and ChoCH Trades

In Trader Journal, use tags to distinguish:
- `BOS-long` / `BOS-short` — trend continuation entries
- `ChoCH-long` / `ChoCH-short` — reversal/counter-trend entries

In Notes, record:
- Which timeframe showed the BOS/ChoCH
- Whether a liquidity sweep preceded it
- Whether an order block formed at the broken level
- HTF bias at the time of entry

## What the Data Usually Shows

After logging 50+ BOS vs ChoCH trades, most traders discover:

- BOS trades with HTF alignment have higher win rates
- ChoCH trades have better R:R but lower win rate (higher risk)
- ChoCH followed by a second confirmation (like a BOS on lower TF) performs better than immediate entry

This is exactly the kind of insight a journal reveals that intuition alone cannot.

## Summary

BOS = trend confirmation. ChoCH = reversal warning. Both are valuable, but they require different position management and risk tolerance. Tag them separately in your journal from day one so you can compare performance after a meaningful sample size.