IntermediateLesson 2 of 4 · 8 min

Change of Character (CHoCH)

The first break of structure against the prevailing trend.

Illustrative chart · Bearish to bullish CHoCH

In a downtrend of lower highs, the first close above the last lower high (1) is described as a change of character.

Definition

A break of structure (BOS) continues the trend. A change of character is the first break in the opposite direction — for example, a close above the most recent lower high in a downtrend.

It signals that the prior structure is no longer intact. It does not confirm a new trend by itself.

Key takeaways

BOS = with the trend; CHoCH = first break against it.
Use closes on a defined timeframe.
A CHoCH is an early warning, not confirmation.

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Charts are illustrative examples, not real market data. This content is for educational purposes only and is not financial advice.

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