What Is Change of Character (CHoCH)?

In uptrend, bearish CHoCH occurs when price breaks below the last significant HL — sellers took out the level bulls defended. In downtrend, bullish CHoCH breaks above last LH.

CHoCH differs from BOS: BOS continues trend; CHoCH opposes it. First CHoCH does not guarantee full reversal — may lead to range or deeper correction — but bias shifts from blind trend-following to caution.

Minor CHoCH on LTF inside HTF trend is often pullback, not reversal. Major CHoCH on trading timeframe or HTF matters more.

Manual traders reduce size on trend trades after CHoCH and watch for confirmation: opposing BOS (LL after bearish CHoCH in former uptrend) for full reversal thesis.

CHoCH at HTF key level is high significance — structural break at structural price.