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Liquidity & structure · Lesson 10 of 20

Market structure: BOS, CHoCH, shift

Structure tells you who is in control. An uptrend makes higher highs and higher lows; a downtrend makes lower lows and lower highs. Breaks of those points tell you whether the trend continues or turns.

BOSBOSCHoCHHLHLHHlast HLLH
Each close above a previous high is a BOS (break of structure: trend continues). The first close below the last higher low is a CHoCH (change of character), which MSNR also calls a shift.
TermMeaningUse
BOSBody close beyond the last swing in the trend directionTrend continues; look for entries with it
CHoCH / shiftFirst body close against the trend (breaks last HL or LH)Possible reversal; at a key level it is your confirmation
HH / HLHigher high / higher lowUptrend
LL / LHLower low / lower highDowntrend

Rules

  • Use body closes for breaks, never wicks.
  • A shift on a lower timeframe inside a higher-timeframe zone is the main MSNR confirmation.
  • Structure on the higher timeframe decides direction; structure on the lower timeframe decides timing.

Check yourself

1. In an uptrend, price closes below the last higher low. What is that?
2. Where is a shift most useful?

Completion history

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Study notes in my own words, based on the MSNR "Trading Secret Algorithm" and Alchemist (White) materials. Educational only, not financial advice. Practise on a demo account and with TradingView Bar Replay before risking real money.