Collectible card · Rare
Change of Character (CHoCH)
The first break of structure against the trend: in a downtrend, price closes above the last lower high.
Why it works
It is the earliest objective sign that control may be shifting. Sellers failed to defend the level they had to defend.
How to use it
Treat it as a warning, not a signal. Best reversals combine a CHoCH with a liquidity sweep just before it and a pullback entry afterwards.
The typical mistake
Calling a reversal on every CHoCH on the 1-minute chart while the 4H trend is still clearly the other way.
FAQ
What is CHoCH in trading?
The first break of structure against the trend: in a downtrend, price closes above the last lower high.
How do you trade CHoCH?
Treat it as a warning, not a signal. Best reversals combine a CHoCH with a liquidity sweep just before it and a pullback entry afterwards.