The first break of structure against the prevailing trend, such as an uptrend breaking below its most recent higher low. "MSS" is often used for the same idea, usually when the break comes with strong displacement.
How traders use it: Treated as an early warning that control may be changing, not proof of a reversal. Traders often wait for a new swing in the new direction to confirm.
Common mistake: Reversing on every CHoCH in a lower timeframe while the higher timeframe trend is intact. Many CHoCHs are just pullbacks.
Related: Break of structure (BOS) · Internal vs external structure · Displacement
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Concepts only. Education only, not financial advice. No pattern on this site has a published win rate.