Core Concepts
Change of Character (CHoCH)
Signals a potential trend reversal by breaking a key swing point
A Change of Character (CHoCH) indicates a potential shift in market sentiment and a possible trend reversal. In an uptrend, it happens when price breaks below the previous higher low. In a downtrend, it happens when price breaks above the previous lower high.
✓How to Recognize
- •Price breaks below previous higher low (uptrend)
- •Price breaks above previous lower high (downtrend)
- •Early sign of a potential reversal
- •Shift in market structure