A Change of Character (ChoCH) is the first lower-high after a series of higher-highs (or first higher-low after lower-lows). Enter on the confirmation of the shift. Catching the new trend at its earliest detectable moment.
Indicators Used
Rules
📉 Short ChoCH (Bearish Shift)
- Prior trend is bullish: consistent higher-highs and higher-lows
- Price breaks below the most recent higher-low (the key swing)
- This break constitutes the Change of Character
- Wait for pullback into the first bearish order block / FVG
- Enter short at the retest
- Stop: above the last higher-high
- Target: the low that preceded the prior uptrend
📈 Long ChoCH (Bullish Shift)
- Prior trend is bearish with lower-highs and lower-lows
- Price breaks ABOVE the most recent lower-high
- Wait for pullback into the first bullish OB/FVG
- Enter long at retest, stop below last lower-low, target prior trend origin
Retest
Preferred Entry
4:1
Target R:R
💡 Pro Tip
ChoCH is powerful because it catches the trend change early. But it's also where breakout failures happen. The safest play is to wait for the pullback after ChoCH rather than entering on the break itself. You sacrifice some R:R for dramatically higher probability.