What is Choch trading?

Choch trading refers to identifying key moments when the market shifts from one trend to another. CHoCH allows traders to spot trend shifts before they fully develop. CHoCH can be used for both long-term and short-term trading strategies. Register for a free demo and refine your trading strategies.

What is a Choch & how does it work?

For example, if the market is in a clear uptrend and suddenly starts printing lower highs, it could signal a CHoCH. This indicates a potential shift from bullish to bearish sentiment. Similarly, Market Structure Shifts (MSS) also deal with changes in price action, but a CHoCH is more specific.

What does Choch mean in a stock market?

While BOS confirms continuation, a change of character, or CHOCH, points to a possible shift in the market’s direction. When the market is in a bullish trend and then breaks below a previous low, forming a lower low, it suggests that buyers may be losing strength and sellers are stepping in.