CHOCH trading, short for Change of Character, is a price action concept used to spot early shifts in market structure.

CHOCH trading, short for Change of Character, is a price action concept used to spot early shifts in market structure. When price takes out a recent swing high or low and then breaks in the opposite direction, it signals that control may be switching between buyers and sellers. Traders use CHOCH to anticipate trend reversals, time pullback entries, and avoid chasing exhausted moves. Unlike a classic Break of Structure (BOS), which confirms continuation with a clean higher high or lower low, CHOCH highlights a potential regime change after a liquidity sweep or failed move.

To trade CHOCH effectively, map the prevailing trend, mark key highs and lows, and wait for displacement through structure followed by a decisive close. Look for confluences such as order blocks, fair value gaps, and session timing, and place stops beyond invalidation. Because false flips are common, prioritize risk management: use modest position sizes, partials at logical targets, and detailed journaling. Backtest rules across multiple timeframes and markets—forex, crypto, indices, and stocks—to refine your edge. With patience and clear criteria, CHOCH can become a high-quality trigger within a robust trading plan.

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