Market Structure Shift vs. Break of Structure: The Key Differences
MSS vs. BOS: Understanding Structure
In SMC and ICT trading, identifying market structure correctly is the difference between a winning trade and a losing one. Two common terms are BOS (Break of Structure) and MSS (Market Structure Shift).
Break of Structure (BOS)
A BOS occurs when the price continues in its current trend. In an uptrend, it's when price breaks above a previous swing high. It signals trend continuation.
Market Structure Shift (MSS)
An MSS is when price fails to make a new high/low and instead breaks in the opposite direction. It signals a potential trend reversal.
Key Identification Tip
An MSS is often preceded by a Liquidity Grab. When you see a liquidity sweep followed by an MSS, it's one of the strongest reversal signals available.
Why it Matters
Misidentifying these leads to trading against the institutional flow. Our Inner Circle Community helps traders refine these skills daily.
Summary
Use BOS to stay in the trend and MSS to find the top or bottom of a move.