The first break of structure against the prevailing trend, such as a downtrend breaking its last lower high. It warns the trend may be turning.
How to identify it
- Established series of lower highs/lower lows (or the opposite)
- Price closes beyond the most recent opposing swing
- Often follows a liquidity sweep
Entry
Enter on the pullback after the CHoCH, often into an FVG or order block.
Stop loss
Beyond the swing extreme that preceded the break.
Target
The next opposing liquidity or prior swing.
Invalidation
Price returns to make a new trend extreme.
Does it work for you?
Textbook reliability means little until you know your own numbers. Tag your change of character (choch) trades in TradeZento and it shows your win rate, average win and loss, and P&L per trade for this pattern, so you know whether to keep it in your playbook.