How to Confirm a Break of Structure: The Hard Close Candle Method
Most traders learn that a break of structure happens when price moves past a previous high or low. What they don't learn is that most of these "breaks" are traps.
A wick poking above resistance and snapping back down isn't a break of structure. It's a liquidity grab. And if you entered on that wick, you just donated to the market.
The Hard Close method gives you a simple, repeatable filter to separate real breaks from noise.
What Counts as a Break of Structure?
A break of structure (BOS) signals that the market is continuing its trend:
- Bullish BOS: Price breaks above the previous swing high, forming a new higher high
- Bearish BOS: Price breaks below the previous swing low, forming a new lower low
But here's the critical question: what counts as "breaking" a level?
There are three levels of confirmation, each stronger than the last.
Level 1: The Wick Break (Weakest)
Price touches or pokes past a structural level but doesn't close beyond it.
This is NOT a valid break of structure.
The wick shows that price tested the level but was rejected. Sellers (at resistance) or buyers (at support) stepped in and pushed price back. Trading this as a break leads to the most common fakeout trap in technical analysis.
Level 2: The Close Break (Standard)
Price breaks AND closes beyond the structural level. The candle body is past the line.
This is the minimum requirement for a valid BOS.
A close beyond the level means that by the time the candle finished, the majority of participants accepted this new price. It's not just a momentary spike - it's a sustained move.
Rules:
- In a bullish market, the candle must close above the previous high
- In a bearish market, the candle must close below the previous low
- A wick-only break that pulls back before close is invalid
Level 3: The Hard Close (Strongest)
The Hard Close is a candle that opens AND closes beyond the structural level, in the direction of the trend.
This is the strongest confirmation that structure has truly broken.
Why the Hard Close Works
When a candle opens beyond a structural level, it means something powerful: all timeframes below have already closed beyond that level.
Think about it. If you're looking at a 4-hour chart and a candle opens above the previous high, that means the 1-hour, 30-minute, 15-minute, and 5-minute candles have all closed above that level before this 4H candle even started. The market has committed.
Hard Close Rules
For a bullish Hard Close confirming a break above a previous high:
- The candle must be bullish (close > open)
- The candle must open above the previous high
- The candle must close above the previous high
For a bearish Hard Close confirming a break below a previous low:
- The candle must be bearish (close < open)
- The candle must open below the previous low
- The candle must close below the previous low
What Disqualifies a Hard Close
- A bearish candle that opens and closes above the previous high is not a Hard Close (wrong direction)
- A bullish candle that opens and closes below the previous low is not a Hard Close (wrong direction)
- The candle color must match the trend direction
This seems like a small detail, but it matters enormously. A bearish candle above a broken high suggests sellers are already stepping in. The break may not hold.
Putting It All Together: A Practical Framework
When you spot a potential break of structure:
| Signal | Action | |--------|--------| | Wick only touches the level | No break. Ignore. | | Wick breaks through, close pulls back | Invalid. Potential fakeout. | | Close breaks through the level | Valid BOS. Consider entry on retest. | | Hard Close beyond the level | High-conviction BOS. Stronger entry signal. |
Common Mistakes
Mistake 1: Trading the wick break The most expensive mistake in structural trading. A wick past a level looks exciting in real-time but is the market's favorite way to trap impatient traders.
Mistake 2: Ignoring candle direction on Hard Close A bearish candle that opens and closes above a previous high is not a Hard Close. The candle must be in the direction of the trend you're confirming.
Mistake 3: Using Hard Close on lower timeframes only The Hard Close concept works best on your structure timeframe (typically 1H or 4H). On the 1-minute chart, the noise-to-signal ratio makes it less reliable.
When to Use Each Level
- Scalping or aggressive entries: Use Level 2 (close break) as minimum confirmation
- Swing trading or conservative entries: Wait for Level 3 (Hard Close) before committing
- High-impact news events: Always wait for Hard Close - wicks are more common during volatility
Key Takeaway
A break of structure is only as good as its confirmation. Wicks lie. Closes are better. Hard Closes are the gold standard.
Before you take any trade based on a structural break, ask yourself: Did price close beyond the level, or did it just wick through?
That single question will filter out the majority of fakeout traps.
Want to practice identifying valid breaks of structure? Try our Break of Structure module or use the Decision Tools to analyze your next trade setup.
