Change of Character (ChoCH)

A Change of Character (ChoCH) is the first sign of a potential trend reversal. It occurs when price breaks the most recent structural point that led to a new high (or low).

Identifying ChoCH

Unlike a Break of Structure (BOS) which signals continuation, a ChoCH signals a shift in momentum. It is often found at Higher Timeframe (HTF) Points of Interest (POI).

Valid vs Invalid ChoCH

Not every structural break is a reversal. A valid ChoCH must happen after:

• Price taps into a higher timeframe POI (Order Block, FVG).
• A liquidity sweep of a major high or low.