Market Structure

Change of Character

The first lower low in an uptrend or first higher high in a downtrend, signaling a potential trend reversal.
Also known as: CHOCHChange of Character (CHOCH)

Change of Character (CHOCH) marks the first structural break in the opposite direction of the prevailing trend. In an uptrend making higher highs and higher lows, the first time price closes below a prior higher low, that's a bullish-to-bearish CHOCH. In a downtrend making lower lows and lower highs, the first close above a prior lower high is a bearish-to-bullish CHOCH.

Unlike Break of Structure (which confirms trend), CHOCH is a warning: institutional flow may be shifting. Experienced traders don't reverse immediately on a single CHOCH. They wait for follow-through such as a subsequent Break of Structure in the new direction, or a retest of the broken level that holds. CHOCH on higher timeframes is significantly more meaningful than intraday noise.

Strategies using Change of Character

🦄
ICT Unicorn Model
ICT Advanced Models

More Market Structure concepts

Break of Structure
A close beyond the most recent significant swing point that confirms trend continuation.
Market Structure
The sequence of swing highs and swing lows that defines whether a market is trending or ra…
Swing High / Swing Low
A local price extreme, typically a bar with lower highs on both sides (swing high) or high…