Trading
Change of Character (ChoCH)
The first sign of a potential trend reversal in market structure.
Full Definition
Change of Character (ChoCH) is a smart money concept indicating the first structural shift that suggests a trend may be reversing. It occurs when price breaks the most recent opposite swing point - breaking a higher low in an uptrend or lower high in a downtrend.
Example
In an uptrend, price fails to make a new high, then breaks below the most recent higher low. This ChoCH signals potential bearish reversal.
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