Trendline Breakouts vs. Change of Character (CHoCH): Entry Mechanics

Traditional retail strategies trade the breakout of a trendline immediately upon a candle close. However, SMC traders wait for a Change of Character (CHoCH) and a break of market structure (BOS) to confirm that institutional momentum has shifted. Waiting for a retracement into a newly formed supply or demand zone rather than chasing the raw trendline break can significantly reduce false breakouts and improve risk-to-reward ratios!