Change of character (CHoCH)

Market Structure Mastery

The first warning sign

A change of character happens when price closes beyond a swing point AGAINST the current trend. In an uptrend, that means closing below the most recent higher low, the first warning a reversal may be starting.

A warning, not a certainty

A CHoCH is a warning, not a certainty. It's the first crack in the prevailing trend's structure, the moment the old pattern of higher highs and higher lows officially breaks.

Look for follow-through

After a CHoCH, traders often wait for the market to then start printing the OPPOSITE pattern, like a lower high following the break, before fully trusting the new direction.