Module 7: Smart Money & ICT Concepts · Lesson 98/144
8 min 55 XP
Every SMC read begins by marking swing highs and swing lows — the peaks and troughs. An uptrend is higher highs and higher lows; a downtrend is lower highs and lower lows. From those swings come the only two structural events that matter.
BOS — Break of Structure
CHoCH — Change of Character
The order of events at a turn
A trend reversal reads like this: the trend runs (BOS, BOS, BOS in its direction), then a CHoCH prints against it — the first warning. After the CHoCH, the new trend confirms itself with its own BOS in the new direction. CHoCH shifts your bias; the next BOS confirms it.
Always judge on the CLOSE
A wick poking past a swing is not a break — it is often a liquidity sweep (next concept). A BOS or CHoCH requires a candle BODY to close beyond the level. Close, not touch: the same rule from breakouts, applied to structure.