Change of Character Pattern
CHoCH signals potential trend reversal when price breaks structure against the prevailing trend in SMC/ICT methodology.
Quick Answer
CHoCH signals potential trend reversal when price breaks structure against the prevailing trend in SMC/ICT methodology.
What Is the Change of Character Pattern?
Change of Character (CHoCH) is a market structure concept that signals a potential trend reversal. Unlike Break of Structure which confirms trend continuation, CHoCH occurs when price breaks a swing point against the prevailing trend. For example, in an uptrend, CHoCH happens when price breaks below a swing low, suggesting the trend may be reversing.
How the Change of Character Forms
- 1Identify the prevailing trend
- 2Mark swing highs and lows
- 3Watch for a break against the trend direction
- 4Confirm with price action after the break
How to Confirm the Pattern
Best Timeframes for Change of Character
How to Trade the Change of Character
- →Identify potential trend reversals
- →Time entries at trend changes
- →Avoid trading against new structure
- →Combine with BOS for confirmation
Common Mistakes to Avoid
Detect Change of Character Automatically
VaultCharts automatically detects Change of Character patterns on your charts. No manual analysis needed - the pattern is highlighted with entry zones and targets.