Break of Structure Examples: Bullish, Bearish, and Candlestick Setups

Bullish BOS example: a close above 110

This is an invented price sequence for explanation, not a historical chart or measured setup. Assume confirmed lows of 90 then 100 establish the rising-low context and the reference high is 110.

Bearish BOS example: a close below 95

Assume a downtrend with confirmed highs of 110 then 103 and a reference low of 95. The example needs no assumption about institutional orders or a subsequent gap.

What the candle can establish

The close and range describe traded prices. They do not reveal the identities, motives, or unfilled orders of participants. A large body can be an optional filter, but calling it institutional displacement does not establish its cause or success rate.

• A close beyond the level is sufficient for the convention here; the entire candle body need not lie beyond it, and candle color is not decisive.
• A bullish three-candle FVG convention compares the first candle high with the third candle low. That gap between outer bars does not prove the middle bar traded no prices in the interval.
• Volume must be identified by feed and units. Exchange contract volume, share volume, and broker tick counts are not interchangeable measures.
• A long wick shows a difference between the extreme and closing price. It does not by itself prove a stop hunt.

Multi-timeframe example: avoid using an unfinished higher bar

Suppose a 4-hour bar trades above a reference high during its first hour but later closes below it. A 5-minute signal observed inside that bar cannot treat the eventual 4-hour close as already known. Using completed higher-timeframe information reduces that timing mismatch but introduces delay.

A confirmed break can still fail

The bullish close at 112 followed by a close at 108 is a failed continuation example, not a reason to erase the original BOS. Keeping losses prevents a definition from becoming circular: a “valid break” cannot mean only one that later wins.

• Wick-only: reject it if the written rule requires a close; another script may use a different convention.
• Close then reversal: retain the break and apply the prewritten exit rule.
• No retracement: if the strategy requires a retest that never occurs, record no entry instead of inventing a fill.
• Gap through a stop: use an execution assumption that allows a worse fill instead of treating the stop as a guaranteed maximum loss.

Test the same examples as a repeatable rule

Pineify can help draft a Pine Script indicator or strategy from the written definition. A screenshot interpretation and a generated script are separate outputs; neither is evidence of a profitable setup.

• Define pivot left/right lengths, trend state, strict comparison or tick buffer, and one-signal-per-level behavior.
• Log the confirmation bar separately from the original pivot bar. Do not backdate a simulated entry to a retrospectively labeled swing.
• Add order-block or FVG drawings only when their definitions are specified; do not infer them from a promised automatic feature.
• In a strategy, specify entries, stops, exits, commission, slippage, and test dates. Preserve an untouched sample and report failures.