Advanced Price Action Analysis with CHOCH Entry Strategy
Change of Character (CHOCH) occurs when the market breaks a previous swing point, indicating a potential trend reversal or continuation.
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Change of Character (CHOCH) is a key concept in Smart Money trading. It occurs when price breaks a previous swing high (in a downtrend) or swing low (in an uptrend), signaling a potential shift in market structure.
Look for breaks of recent swing points with strong momentum. A valid CHOCH should be accompanied by increased volume and clear price rejection at the broken level.
After CHOCH is detected, wait for a pullback to the broken level (now acting as support/resistance). Enter on confirmation with tight stop loss beyond the CHOCH point.
Always use proper position sizing based on your account size and risk tolerance. Never risk more than 1-2% of your account on a single trade.