M1 · L4Market Structure
Change of Character (CHoCH)
A CHoCH is the first warning sign that the trend is about to flip.
What This Means
In an uptrend, price keeps making higher lows. When price breaks below a previous higher low, that's a Change of Character (CHoCH). It doesn't confirm a reversal yet — but it tells you to stop looking for buys and start watching for a potential downtrend to develop. It's the earliest signal of a trend change.
Visual
The Rule
CHoCH = trend may be ending. Stop trading in the old direction.
CHoCH is your warning. BOS in the new direction is your confirmation.
COPY THIS
Tick each step as you complete it1
Mark all higher lows in your current uptrend
2
Watch for price to break BELOW the last higher low
3
That is your CHoCH — write it on the chart
4
Stop looking for buy setups
5
Now wait to see if price makes a lower high
If it does, you have confirmation the trend has changed
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Common Mistake
Don't immediately sell on a CHoCH. It's a warning, not a signal. Wait for price to confirm with a bearish BOS before entering short.
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