CHoCH (Change of Character): the first sign of a trend change?
CHoCH (change of character) is a break of structure against the trend, regarded as the first signal of a possible change in direction.
English term: Change of character (CHoCH)
A CHoCH (change of character) appears when price breaks structure in the direction opposite to the existing trend: in an uptrend it breaks the last higher low, and in a downtrend the last lower high. In ICT/SMC (Inner Circle Trader / Smart Money Concepts), it is an early signal that control of the move may be passing to the other side.
It is a signal of possibility, not certainty: some breaks turn out to be just a deep pullback, after which the trend resumes. Authors define a CHoCH differently and confuse it with the similar MSS (market structure shift), so the same setup is sometimes described differently. Basing decisions on a CHoCH alone, without context and risk control, is risky.
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Related terms
Other terms in the “ICT/SMC” category
This entry explains a concept and is not an investment recommendation. Cryptocurrencies and leveraged trading carry a risk of losing money. Risk Warning.
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