Change of Character (CHoCH) — what it is and how to use it in trading
Definition
A Change of Character (CHoCH) is the first structure break against an established trend — an early, riskier signal of a possible reversal, unlike a BOS, which only confirms a trend already in place.
How it works in the builder
Technically a CHoCH is computed the same way as a BOS — a close beyond the last swing, with left/right parameters — but it's applied to the first break against the current structure's direction: essentially a BOS that broke the "wrong" way.
What it looks like on the chart
On the chart a CHoCH is the first point where a sequence of rising swing highs and lows (or the reverse) breaks: for example, after a series of higher lows, price suddenly closes below the last significant low.
Typical use
A first entry into a new trend, often confirmed by a zone: choch_up == 1, frequently combined with order_block_bull/price_in_ob_bull as an extra filter.
Common pitfalls
A CHoCH is the earliest — and so the least reliable — reversal signal in the SMC toolkit: it can't tell a genuine trend change from a deep correction inside a trend that is still alive. In practice it is almost never used without confirmation, such as a second CHoCH or a BOS in the new direction.
This block is available in the strategy builder
137 no-code blocks — build an entry condition with this term and test it on history
Historical results do not guarantee future ones. The service is an informational and analytical tool, not an individual investment recommendation; trades are not executed.
CHoCH Up
Block variants
CHoCH Down