Structure setups
Trend changes: the bot spots a market reversal at an early stage.
About this section
This section tracks market structure breaks on the hourly chart. Structure is built from swing highs and lows: as long as each new high is above the previous one, the trend is up. When that sequence is broken, the character of the move changes.
A break with the trend is labelled BoS, break of structure: the move continues in the same direction, taking out the next swing. A break against the trend is labelled CHoCH, change of character: for the first time in a while price has broken a level in the opposite direction, and that is the first sign of a reversal.
The type of break is determined relative to the weekly direction, not on its own. The same hourly breakout means different things depending on where the higher timeframe is pointing, which is why the weekly trend is shown on the card next to it.
What the bot looks for
A structural level is broken on the hourly chart. The type depends on the weekly trend: a break WITH the trend is a continuation of the movement (BoS), a break AGAINST it is a change of character and a potential reversal (CHoCH).
Price broke a structural level. The “with the trend / against the trend” label shows whether the break is aligned with the weekly trend. After this - either consolidation in the direction of the break, or a return and a false break. Which scenario plays out will be shown by the reaction at the retest. The decision is yours.
Frequently asked questions
BoS is a structure break with the trend: price took out the next swing in the direction it was already going. CHoCH is a change of character: price broke a structural level against the trend, which often precedes a reversal.
A pullback does not break the sequence of swings, a trend change does. That is why this section watches for a structural level break rather than the depth of the retracement in percent.
An hourly break with the higher trend and against it mean different things. With the trend it is continuation, against it is a warning. Without the higher timeframe the same signal is read incorrectly.
Local peaks and troughs around which the move turned. They form the market structure, and breaking them is what counts as a structure break.