The NinjaTrader BOS & CHOCH Indicator is built on one of the fundamental concepts of price action analysis — the study of market structure. At its core, the indicator tracks two key elements: Break of Structure (BOS) and Change of Character (CHoCH). Together, they form the foundation for understanding how trends are established, maintained, and eventually reverse.
From a structural perspective, a BOS occurs when the price decisively breaks a key high or low in the direction of the prevailing trend. This confirms trend continuation and reflects the strength of the underlying order flow. CHoCH, on the other hand, marks the first break in the opposite direction — an early signal that market sentiment may be shifting and the current trend could be losing control.
In practice, these elements form the basis for Smart Money Concepts (SMC), Inner Circle Trader (ICT) methodologies, and other approaches grounded in structural analysis.
The significance of BOS and CHoCH lies in their ability to contextualize market movements. Instead of treating every breakout as meaningful, the methodology places these signals within a broader sequence of higher highs / higher lows (bullish structure) and lower highs / lower lows (bearish structure). This distinction is crucial: BOS confirms the current trend direction, while CHoCH indicates a potential reversal.
The BOS & CHOCH Indicator for NinjaTrader allows traders to integrate this logic into their analytical process, preserving methodological rigor and the accuracy of structure identification.
Important Note
This version of the BOS & CHoCH Indicator for NinjaTrader is designed to strictly follow the correct definition of BOS and CHoCH patterns, based on the precise sequence of swing points that indicate a change in market character.
Many similar indicators simplify the logic and interpret BOS and CHoCH as any local breakout, without verifying the necessary swing sequence. This approach ignores the overall market context and the preceding Bullish or Bearish structure, often resulting in false signals.
In this solution, BOS and CHoCH are identified only when the full swing sequence is respected. Each breakout is considered in the context of the complete structure, not as an isolated event. This ensures that real changes in market character are captured, providing accurate and reliable analysis.
BOS and CHoCH Identification Rules
| Type BOS / CHoCH | Classic Version | Allowable Deviation |
| Bullish BOS | HL → HH → break HH ↑ | HL → HH → HL → break HH ↑ |
| Bearish BOS | LH → LL → break LL ↓ | LH → LL → LH → break LL ↓ |
| Bullish CHoCH | LL → LH → break LH ↑ | LL → LH → HL → break LH ↑ |
| Bearish CHoCH | HH → HL → break HL ↓ | HH → HL → LH → break HL ↓ |
The NinjaTrader Market Structure (BOS & CHoCH) Indicator provides practical and convenient tools, allowing traders to adjust settings for different trading styles and approaches. These features include:
Separate BOS and CHoCH
The indicator allows traders to separately enable or disable the display of BOS (Break of Structure) and CHoCH (Change of Character). This flexibility is convenient because some traders prefer to focus only on market continuation signals (BOS), while others concentrate on reversal points (CHoCH). By customizing the display, users can adapt the tool to match their personal trading approach without unnecessary visual clutter.
Swing Point Visualization on the Chart
For better understanding and validation, the indicator provides a clear visualization of Swing Points directly on the chart. This makes it easy to track how market structure is forming and how BOS and CHoCH points appear in real time. Such visualization helps traders verify the sequence of swing highs and lows, increasing confidence in trade decisions. If the trader finds the display distracting, Swing Point marks can be easily turned off.
Signals and Alerts
The indicator includes flexible options for trading signals and alerts. Traders can enable or disable alerts depending on whether they want active notifications or only visual confirmation. Similarly, signals themselves can be switched off when the indicator is used as part of a larger strategy with multiple tools. This provides control over information flow and avoids overloading the chart or trading workspace.
Flexible Confirmation Settings for BOS and CHoCH
Traders can fine-tune the logic for confirming BOS and CHoCH by choosing whether to rely on candle closes or high/low levels. This option accommodates different trading styles: some strategies prioritize candle closes as a conservative confirmation, while others prefer high/low extremes for early entries. This adaptability makes the indicator suitable for both aggressive and conservative traders.
Threshold-Based Validation
The indicator includes the ability to define a threshold for BOS and CHoCH confirmation. This means a trader can set a minimum breakout distance that must be achieved before a signal is validated. By adjusting this threshold, users can filter out false breakouts, tailor the precision of signals, and align the indicator’s logic with their specific trading strategy.
The indicator has the following parameters:
Alerts – Configure various types of alerts.
Enable Break Confirmation Threshold – enables threshold-based confirmation for BOS and CHoCH. A breakout of a swing point is validated only when the price exceeds it by the predefined threshold.
Threshold Type – sets the unit for threshold measurement: ticks, points, or percentage.
Enable Buy/Sell Signals – enables or disables the display of buy/sell signals on the chart.
Enable BOS – activates the detection of Break of Structure (BOS) on the chart.
BOS Confirmation Price Type – specifies which price type is used to confirm BOS: candle close or high/low values.
Enable CHoCH – activates the detection of Change of Character (CHoCH) on the chart.
CHoCH Confirmation Price Type – specifies which price type is used to confirm CHoCH: candle close or high/low values.
Swing Points Settings – manages swing point visualization, including enabling/disabling display, adjusting label size, and customizing colors.
We can also turn the indicator into an Automated Trading Strategy with an extended set of custom functions (stop loss, take profit, trailing stop, risk management parameters, trading time limit, and others).
Request a free consultation from our team of professional programmers and find out the cost and timing of your project development.
| Signal Plot Name |
Signal Plot Values | Description |
| Long | > 0 | BUY Signal |
| Short | > 0 | SELL Signal |
Nordman Algorithms is not liable for any risk that you face using the software. Please, use the software on your own responsibility. The software is coded in accordance with a common known concept and Nordman Algorithms does not guarantee accuracy or trading performance of the software signals.
Futures, foreign currency and options trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing one’s financial security or lifestyle. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results. View Full Risk Disclosure.
CFTC Rules 4.41 – Hypothetical or Simulated performance results that have certain inherent limitations. Unlike the results shown in an actual performance record, these results do not represent actual trading. Also, because these trades have not actually been executed, these results may have under-or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated or hypothetical trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to these being shown.
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