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Choch
Choch
Choch
CHoCH is a fancy term for a switch in trend via a BOS HH & HL printing and then the HL is
broken forming a LL - bear trend switch LL & LH printing and then the LH is broken forming
a HH - bull trend switch.
If price is in a Downtrend it is making Lower Lows (LL's) and Lower Highs (LH's).
After a Lower Low is formed we expect to see a Lower High form if the trend is to remain. If
price instead breaks the previous Lower High and forms a Higher High; that would be a
Change of Character (CHoCH). The character of the trend has begun to switch from Bearish
to Bullish. If price is in a Uptrend it is making Higher Highs (HH's) and Higher Lows (HL's).
After a Higher High is formed we expect to see a Higher Low form if the trend is to remain. If
price instead breaks the previous Higher Low and forms a Lower Low; that would be a
Change of Character (CHoCH). The character of the trend has begun to switch from Bullish
to Bearish.