How to Swing Trade Break of Structure BoS. Simple Strategy + Real Example in Forex
- VasilyTrader
- 2 days ago
- 2 min read
Today, I will show you a profitable swing trading strategy based on Break of Structure BoS.
I will explain a proven model you can use for swing trading any forex pair, and I will share a real example.
4-Step Strategy
Our ideal break of structure-based BoS swing trading setup will be based on 4 important elements.
Trend
First, the market should be in a trend on a daily time frame.
For swing buying, we will need a forex pair to be bullish on a daily.
For selling, we need a forex pair to be bearish on a daily.
Pullback
Our condition number 2 is that we will buy or sell only after a pullback.
In an uptrend, buying from the highs is very risky. The market should retrace from the high first.
In a downtrend, selling from the lows is very risky. The market should pull back from the low first.
Liquidity Zone
Condition number 3.
We will buy or sell only after a test of a liquidity zone.
In an uptrend, the price should retrace to a liquidity demand zone.
In a downtrend, the price should retrace to a liquidity supply zone.
Break of Structure BoS
A final condition,
We will need a confirmed break of structure BoS on a 4H time frame as a confirmation signal.
After a test of a liquidity zone, execute a market structure mapping on a 4H time frame.
For buying in an uptrend, we will need a bullish break of structure.
We will aim at least at the current high in an uptrend.
With a sl below the lower low on a 4H.
In a downtrend, we will need a bearish break of structure.
We will aim at the current low in a downtrend.
With a sl above the higher high on a 4H.
Example
Now, let me show you an example so you could you see how to use this price model in practice.
Look at the price action on CHFJPY pair on a daily time frame.
The market is in an uptrend, and the price has just retraced after forming a new higher high.
Our confirmation signal will be a bullish break of structure BoS on a 4H time frame.
When the price breaks and closes above the level of the last HH, BoS will be confirmed.
After that, a buy limit order will be set on a retest of a broken structure.
Take profit will be based on the current high.
Stop loss will be below a lower low on a 4H.
Takeaway
Not every break of structure brings profits in swing trading forex.
These 4 simple conditions, accompanied by a break of structure, will help you identify an ideal swing trading setup.
Thanks for reading!
