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Change of Character (CHOCH)

Change of Character (CHOCH)

A change of character (CHOCH) is, in its most basic definition the first break of structure (BOS) signifying a trend change (shift
in order flow) from bullish-to-bearish or bearish-to-bullish structure.

▫This break of structure (BOS) can occur either with wicks or bodies regardless of swing/internal structure, and occurs almost
constantly in price.

▫From a supply and demand perspective, this indicates the transfer of control from either supply to demand, or demand to supply
(and in this process expectational orderflow shifts).

Sweep

The first part of a CHOCH is the sweep, where we see price running some form of liquidity to the left (pivot, rangebound, trendline,
etc) before we see the trend change (failure of supply/demand, shift in orderflow).

Utilizing CHOCHs

Because CHOCHs occur constantly in price and can often signify a false shift in direction, they are best utilized inside of, and
paired with, significant higher timeframe points of interest (POI)/entry zone. An example would be a bearish 15M CHOCH
inside of a significant 4HR supply zone, or a bullish 15M CHOCH inside of a significant 4HR demand zone.
▫A 15M CHOCH from an 4HR zone is great, a 1M CHOCH from an 15M zone is great. A 5s CHOCH from a refined 15M zone can
be great too when utilized correctly.

Candlestick Structure

Change of Character (CHOCH) 1

 When zooming in to individual candles and determining where your CHOCH is, it can actually look visually different a few different
ways although the concept stays the same.
▫We’re looking for the first BOS against current trend (orderflow), which on lower-timeframes is typically a single candle that traded
either above or below the previous high or low.
▫The exception to this is if both sides are equally as high, then it can be considered CHOCH if traded past.

Types of CHOCH Incorporating Flips

We’ll talk much more about what flips are later in📕 Flip Zones, so for now don't worry about this section of CHOCHs and come
back to it once you’ve understood what a flip zone is.

Before and after a CHOCH is created, price can do a number of different things which can present other areas of entry for us,
shown with the visual below. Shoutout Tatiana for the visual and thorough explanations, if you have any questions about it - shoot
her a message on Discord.

Change of Character (CHOCH) 2

 SOURCES

• https://discord.com/channels/728715235531161611/755028918846619798/902982839899938878
• https://discord.com/channels/728715235531161611/755028918846619798/873631573491191819

• https://discord.com/channels/728715235531161611/825706592707805195/842085290159636490

• https://discord.com/channels/728715235531161611/755028918846619798/873631573491191819

Change of Character (CHOCH) 3