Break of Structure (BOS)

The first hour of the trading day is a period of intense volatility and opportunity. It is when the market digests overnight news and institutional players begin to reveal their intentions. For the unprepared trader, it can be a minefield. But for the prepared trader, it can be a goldmine. Oliver Velez, a master of the opening bell, has developed a series of strategies designed to conquer the first hour of trading. This article will explore the core principles of Velez's "Trade the Open Lik

Price action analysis, while effective, exists in a two-dimensional world of price and time. To add a third, important dimension, we must introduce volume. Volume Profile analysis provides a histogram of traded volume at each price level, revealing where the real business has been done. It allows us to see the market's structure through the lens of liquidity and value.

While the foundational principles of the BOS/Sweep strategy are universal, there are subtle but important differences between the bullish and bearish applications of the model. Bearish setups, in particular, often unfold with greater speed and ferocity, a phenomenon famously described as “stocks take the stairs up and the elevator down.” This article provides a dedicated, in-depth examination of the bearish BOS/Sweep setup.

High-impact news releases, such as the FOMC statements, Non-Farm Payroll (NFP) reports, or CPI data, are the scheduled earthquakes of the financial markets. They inject a massive dose of volatility and uncertainty, creating an environment that most traders are taught to avoid. However, for the prepared and disciplined trader, these events can offer some of the highest-probability trading opportunities. The key is to have a specific playbook.

Building upon the foundational BOS/Sweep framework, we now introduce a layer of precision that can significantly enhance the quality of our entries: the Fair Value Gap (FVG). An FVG, also known as a price imbalance or efficiency gap, represents a pocket of one-sided liquidity, an area where price has moved so rapidly that it has left behind a void.

Identifying a high-probability setup and executing a precise entry are only half the battle. The true art of professional trading lies in what happens *after* the entry: trade management. A well-managed trade can turn a modest winner into a significant gain, while a poorly managed trade can see a profitable position turn into a loss.

No market exists in a vacuum. Asset classes are interconnected, and the price action of one can often provide valuable clues about the likely direction of another. This is the principle of inter-market analysis, a effective technique for adding a layer of confirmation to any trading setup. This article introduces a sophisticated confirmation method for our BOS/Sweep strategy: using correlated asset divergence.

In the intricate world of intraday trading, the ability to identify and act upon high-probability setups is paramount. The market is a complex adaptive system, a perpetual battlefield between buyers and sellers. Within this chaos, however, patterns emerge. One of the most robust and reliable of these patterns is the combination of a liquidity sweep and a subsequent break of market structure (BOS).

The foreign exchange market is not a monolithic entity; it has distinct periods of high and low activity, driven by the opening and closing of major financial centers. The London session, in particular, is renowned for its high volatility and significant price movements. This period, often referred to as the "London Killzone" by intraday traders, offers a fertile ground for specific, time-of-day-based strategies.

While a robust entry and exit methodology is the engine of a trading strategy, the transmission—the system that translates horsepower into forward motion—is its risk and money management protocol. Most traders adhere to a fixed fractional position sizing model, risking a set percentage of their account on each trade. This is a valid and effective approach.

An analysis of the resurgence in merger and acquisition (M&A) and leveraged buyout (LBO) activity and its implications for the leveraged loan market. This article examines the drivers behind the rebound and how it is expected to impact loan issuance, pricing, and credit quality in 2026.

A detailed case study of a successful leveraged buyout, dissecting the financial engineering, operational improvements, and strategic repositioning that private equity firms use to generate outsized returns. This article moves beyond the theory of LBOs, providing a practical, step-by-step analysis of a real-world transaction.

This article provides a quantitative framework for identifying and validating Breaks of Structure (BOS), moving beyond subjective chart analysis. We introduce a volatility-adjusted methodology for confirming trend continuation with higher statistical confidence.