Change of character
A change of character (CHoCH) is the first break of structure against the prevailing trend — the point at which an uptrend first makes a lower low, or a downtrend first makes a higher high.
Where a break of structure confirms continuation, a change of character is the first evidence of possible reversal. An uptrend that has been making higher highs and higher lows produces a CHoCH the moment it makes a lower low.
The honest caveat is that most changes of character are not reversals. Trends pause, retrace and resume constantly, and each of those pauses can print a CHoCH. Treating every one as a reversal signal is a reliable way to trade against a trend repeatedly and expensively.
If you find yourself taking a CHoCH entry against a strong trend for the third time in a session, the pattern is not the problem — the repetition is. That is a behavioural signal, not a technical one.
Related terms
Maintained by Jared Sinclair, Founder · Syrax Global FZCO · Definitions are educational, not financial advice.
Knowing the vocabulary is the easy part.
Every term here can be learned in an afternoon. Applying them consistently under pressure is the part that decides outcomes — and the part we measure.