A Change of Character (CHoCH) is the first break of structure against the prevailing trend. In Smart Money analysis it flags where control may be shifting from buyers to sellers or vice versa.
How traders use it
- A CHoCH warns of a potential trend reversal.
- It often precedes a fresh order block forming.
- Confirm with a subsequent break of structure.
See it in dtcharts
Mark order blocks, gaps and liquidity on the chart in the dtcharts terminal with the drawing tools and Smart Money module.