Valid vs Invalid Break of Structure
A wick poking above resistance and snapping back isn't a break of structure—it's a liquidity grab. How a candle closes relative to a structural level determines whether the break is real. There are three levels of confirmation, each progressively stronger.
Three Levels of BOS Confirmation
Level 1: Wick Break INVALID
Price touches or pokes past the structural level but the candle closes back inside the range. The wick shows the level was tested but rejected.
- • Price tested the level but sellers/buyers defended it
- • Candle body remains inside the range
- • Most common fakeout trap in technical analysis
- • Do NOT enter based on wick-only breaks
Level 2: Close Break VALID (Standard)
Price breaks AND closes beyond the structural level. The candle body is past the line. This is the minimum requirement for a valid break of structure.
- • Candle body closes beyond the structural level
- • Market accepted the new price by candle close
- • Minimum confirmation for structure break
- • Good for aggressive/scalping entries
Level 3: Hard Close STRONGEST
A candle that opens AND closes beyond the structural level, in the direction of the trend. This proves all lower timeframes have already closed beyond the level.
- • Candle opens beyond the level (all lower TFs already closed past it)
- • Candle closes beyond the level
- • Candle direction matches the trend (bullish candle for bullish BOS)
- • Best for swing trading and conservative entries
Side-by-Side Comparison
| Factor | Wick Break | Close Break | Hard Close |
|---|---|---|---|
| Valid BOS? | No | Yes | Yes (Strongest) |
| Close position | Inside range | Beyond level | Open + Close beyond |
| Candle direction | Any | Any | Must match trend |
| Fakeout risk | Very High | Moderate | Low |
| Lower TF confirmation | None | Partial | All TFs closed beyond |
| Best for | Nothing (avoid) | Scalping, aggressive | Swing, conservative |
The Direction Trap
A common mistake: counting a bearish candle that opens and closes above a broken high as a Hard Close. It's not.
For a bullish Hard Close, the candle must be bullish (close > open). A bearish candle above the level actually signals that sellers are stepping in—the break may not hold.
Bullish Hard Close
- • Green candle
- • Opens above previous high
- • Closes above previous high
- • Confirms bullish BOS
NOT a Hard Close
- • Red candle
- • Opens above previous high
- • Closes above previous high
- • Wrong direction = sellers present
When to Use Each Level
Use Close Break When:
- Scalping or day trading with tight targets
- Strong trending market with clear direction
- Volume confirms the break
- Lower timeframe already shows structure shift
Use Hard Close When:
- Swing trading or position trading
- Choppy or ranging conditions
- High-impact news creating volatile wicks
- Maximum conviction needed before committing
Frequently Asked Questions
Can a wick above a level ever be significant?
Yes—but as a rejection signal, not a break. A long wick above resistance that closes below it often signals a failed breakout or liquidity sweep. It can be a shorting opportunity, not a buying one.
Why does candle direction matter for a Hard Close?
A bearish candle above a broken high means sellers appeared at the new level. Even though both open and close are above the line, the selling pressure weakens the break. A bullish Hard Close means buyers controlled the entire candle—much stronger signal.
What timeframe should I use for Hard Close confirmation?
Use your structure timeframe—typically 1H or 4H for intraday, Daily for swing trading. The power of Hard Close is that it fractally confirms all lower timeframes. On 1-minute charts, there's too much noise for this method to be reliable.
Do I always need a Hard Close to trade a BOS?
No. A close break (Level 2) is valid and many successful traders use it as their standard confirmation. Hard Close adds conviction but can mean you enter later. It's a tradeoff between confirmation quality and entry timing.