Market Structure & Liquidity · Entry 32 of 71

What Is CHoCH?

Change of Character — signaling potential market trend reversals

Core Definition

Change of Character (CHoCH) refers to a shift in market structure indicating a potential trend reversal, where the price transitions from making higher highs and higher lows to making lower highs and lower lows, or vice versa.

Key Concepts

• It represents the first structural failure of the current trend.
• Often occurs at major higher-timeframe supply or demand zones, indicating that institutional order flow is shifting.