CHoCH – An Early Warning of a Possible Trend Reversal

Change of Character (CHoCH) is a concept used to identify a possible shift in market behaviour.

Imagine a market making Higher Highs and Higher Lows.

Suddenly, price breaks an important Higher Low.

This may indicate that bullish momentum is weakening.

However, CHoCH is not an automatic reversal signal.

Wait for additional confirmation and consider the larger market context.

Do you use CHoCH as an entry signal or simply as a warning?