They seem like pretty much the same thing. If a higher high is created and a lower low is created, they have broken structure right, so what’s the difference?
Break of structure has no universal definition. But it can be defined as a Close above a high, or a close below a low. Its a less aggressive signal than just a breach of H or L forming a HH or LL Some traders like to have this additional level of confirmation from an actual Closing price before acting on it.
Thank you for your reply, so basically it’s the same right, but what do you mean by it’s less aggressive? Do you mean H’s and L’s are more apparent? Because you can have a high or low within a BOS also.
An aggressive approach would be to buy EUR/USD as soon as there was a breach of the most recent high. It is less aggressive to wait for another chart feature to confirm whatever your plan is.
So, its less aggressive to wait until not only is the most recent high breached, but price has closed above the most recent high as well. And that might only happen several bars later.
The more aggressive trader gets more trades and enters at a more favourable, lower price. so perhaps their win rate is lower but their r:r is higher. A less aggressive trader waits for confirmation so they have to buy at a higher price to get long, and their r:r is maybe not so good, but perhaps their win rate is now much higher.
Gotcha! Nice. Thank you so much.