Free course · Lesson 10 of 14

CHoCH: the change of character

The proof that a move has really turned.

Step by step

1. Price is in an uptrend, making higher lows. This one is the last higher low before the top.
2. Price sweeps the high, then closes back below it. Interesting, but not enough on its own.
3. Now a candle closes below the last higher low. The uptrend’s character has changed. That’s the CHoCH (change of character): sellers have taken control.
4. A sweep followed by a CHoCH is the signal this strategy waits for. No CHoCH, no trade.

Remember: CHoCH: after a sweep, price closes through the last swing the other way. It tells you the move has turned.