WickCheck / Trading school / Change of character
Change of characterCHoCHIntermediate
The first break of structure against the current trend, an early sign the trend may be turning.
Simplified illustration, not real market data.
What it means
In an uptrend, the first close below the last higher low is a bearish change of character. It does not prove a reversal; it only says the old pattern has been interrupted.
Some traders use CHoCH and MSS as the same thing; others call MSS a CHoCH that comes with displacement.
How to spot it
- Identify the trend first.
- Mark the last swing that protected the trend (the last higher low in an uptrend).
- Wait for a close through it.
Common mistakes
- Treating every CHoCH as a reversal. Many are just pullbacks inside a bigger trend.
Related terms
Break of structureA candle closing beyond the last swing high (bullish) or swing low (bearish) in …Market structure shiftA break of the opposite swing, usually with a strong, fast move, that signals pr…Change in state of deliveryPrice closing back through the opening level of the candles that started the las…
Why most strategies need a human behind the screen
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Education only, not financial advice. Definitions vary between teachers; these are ours, written for clarity.