Smart Money Concepts

Change of Character (CHoCH)

Definition

A shift in market structure that signals a potential trend reversal. In an uptrend, CHoCH occurs when price breaks below the most recent higher low. In a downtrend, it occurs when price breaks above the most recent lower high.

Example

After a sustained uptrend, EUR/USD broke below its last higher low at 1.0800, printing a CHoCH and signaling a shift to bearish momentum.

Explore More

Learn Trading with SignalPro

518 trading terms, 311 lessons, and AI-powered signals — all free to start.

Download Free