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Break of Structure

Definition

A break of structure is a close beyond the last confirmed swing point that was keeping a trend alive, such as a close under the last higher low in an uptrend.

Detailed Explanation

It's the point where a trend read stops being valid. A wick through the level is weak evidence, so most rules ask for a full candle close beyond it, ideally on rising volume. A break of structure doesn't prove a reversal, since price can reclaim the level, but it does remove the reason for holding a trend trade. Trend traders use it as an exit and as a signal to stop re-entering. Reversal traders use it as a first clue that the other side has taken control, then wait for a lower high before acting.
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