The 1-Minute Break of Structure (BOS) Trading Setup
A Strategic Guide to Navigating Intraday Price Action
Introduction
The 1-minute BOS (break of structure) setup is a tactical approach employed by price action traders to capitalise on shifts in market structure within the fastest intraday timeframe. By following precise chart cues, this method seeks to identify moments when the market transitions between higher and lower levels, offering strategic entries for high-probability trades.
Step 1: Following the Chart Structure
Begin by closely observing your 1-minute chart, tracking price movements until the formation of a new higher high or lower low. This fresh level signals a potential structural change and marks the starting point for your setup.
Step 2: Marking the Left Shoulder
Once a new higher or lower level is established, focus your attention on the preceding swing—referred to as the “left swing” or “left shoulder.” Mark the top and bottom boundaries of this swing. These levels act as reference points, representing the last decisive move before the market attempted to set a new structure.
Step 3: Waiting for the Break
Patience is key. Monitor the price action as it approaches the marked levels. You are waiting for price to break below (or above, if trading the opposite direction) these boundaries. This break is your initial confirmation that the prevailing structure is being challenged and that a reversal or continuation may be on the horizon.
Step 4: The Pullback and Entry
After the break, observe the price as it retraces back towards the top of the left shoulder (the marked swing high). This return provides an optimal entry opportunity. Prepare to enter a short (sell) position as the price retests or approaches this level, using the confluence of structural resistance to your advantage.
Step 5: Setting Targets
Your take-profit (TP) should be strategically aligned with previous price action. Scan the chart to the left, identifying significant price levels, support zones, or liquidity pools where price previously reacted. These reference points serve as logical targets for exiting the trade, ensuring you lock in gains before encountering renewed buying interest.
Conclusion
The 1-minute BOS setup is as much an exercise in discipline as it is in technical skill. By systematically waiting for structural shifts, marking critical swing levels, and exercising patience for the pullback, traders harness the natural ebb and flow of the market’s microstructure. With careful execution and a keen eye for price action, this approach can become a robust addition to your intraday trading arsenal.
Thanks
Stephen V
Watch the YouTube video here
Find us on TikTok and Instagram too.
@online.prop.firms
