Video summary

BoS and CHoCH Trading Strategy: Wait For This Entry Signal

Main summary

Key takeaways

Finance

Finance-Focused Summary (BOS + CHoCH Entry Confirmation Strategy)

Core Idea

A trading framework using Break of Structure (BOS) and Change of Character (CHoCH) to confirm entries with multi-timeframe context, specifically:

  • Long from discount
  • Short from premium
  • Requires daily (higher timeframe) confirmation using daily closes (wicks don’t count)

Definitions / Rules Emphasized

  • Break of Structure (BOS) = trend continuation
  • Change of Character (CHoCH) = trend reversal (shift in control from bulls to bears or vice versa)

Higher Timeframe Confirmation (Daily)

  • Close above the previous high confirms bullish continuation / BOS context
  • Close below the relevant low confirms CHoCH to flip to bearish bias
  • Wicks do not count: only the closing price matters

CHoCH Timing Requirement

  • CHoCH must occur on the last low of the last BOS
  • Procedure:
    1. Identify the last BOS
    2. Identify the associated “protected” low
    3. A close beyond the protected low confirms CHoCH

Premium / Discount Framework (Explicit)

Use a Fibonacci 50% level from a defined high-to-low leg:

  • Short from premium = above 50%
  • Long from discount = below 50%

Tool purpose:

  • Restrict trade locations to reduce FOMO (claimed eliminates ~70–80% of FOMO)

Multi-Timeframe Entry Confirmation (Step-by-Step)

The method is applied fractally (same logic on multiple timeframes):

  1. Mark daily CHoCH / BOS

    • Determine whether conditions favor longs or shorts based on the daily character shift.

  2. Draw Fib from the relevant high to low leg

    • Confirm price is in the correct zone:
      • For shorts: price action in/above 50% (premium)
      • For longs: price action below 50% (discount)

  3. Drop to a lower timeframe to refine the exact entry

    • Example sequences mentioned:
      • Daily → 1-hour → 5-minute
      • Or 4-hour → 15-minute (described as a common workflow)

  4. On the lower timeframe

    • Wait for the same BOS + CHoCH sequence aligned with the higher timeframe bias.

  5. Execute with a risk rule

    • Stops:
      • For shorts: stop loss above the relevant high (or above the key invalidation level)
    • Targets:
      • Referenced as moving toward prior lows (no exact numeric targets stated beyond “lows down here”).

Risk Management / Caution Points

  • Wicks don’t count for BOS/CHoCH confirmation—use closes only.
  • Context matters:
    • The pattern is said to work only when price is in the correct premium/discount area
    • Without alignment, entries can become “random” and lead to stop-outs.
  • Trade management nuance:
    • If price is aggressive and may not retrace fully to the ideal trigger level:
      • Consider a half-size entry early, then add if/when price reaches the intended zone (optional approach).
  • Lower timeframes add noise:
    • Advice: start with a daily or 4-hour baseline, then use 15-minute / 1-hour to pinpoint.

Assets / Instruments and Tickers Mentioned

  • EUR/USD (shown as examples across daily, 1-hour, 5-minute, 4-hour, and 15-minute)
  • No other tickers/ETFs/crypto mentioned in the subtitles.

Key Numbers / Metrics Mentioned

  • Fibonacci 50% (main premium/discount boundary)
  • Claimed behavioral impact:
    • 70–80% reduction of FOMO (tool effect)
  • Example timing:
    • One EURUSD move “took a few weeks to play out”
  • Example magnitudes (not tied to a specific trade’s exact prices):
    • 20 pips, 30 pips (1-hour to trigger granularity)
    • 10 pips (5-minute granularity)

Explicit Recommendations / Strategy Usage

  • Use BOS + CHoCH across multiple timeframes to confirm entries.
  • Only consider:
    • Shorts in premium (above 50%)
    • Longs in discount (below 50%)
  • Preferred timeframe structure:
    • Baseline: daily or 4-hour
    • Entry refinement: 1-hour & 15-minute (or 5-minute)

Disclosures / Disclaimers

“All of this is my opinion only and not financial advice.”

Presenters / Sources

  • Justin Bennett (founder of Daily Price Action)
  • Mentions promotional content for IC Markets and an SMC course/training. No other finance presenters are described.

Original video