ICT Change of Character (CHoCH) Explained

What is Change of Character in ICT?

An early warning that price behaviour may be changing, usually when price breaks a swing against the prior short-term trend.

Definition of Change of Character

A break of a relevant swing point that disrupts the prior sequence of HH/HL or LH/LL.

How to identify Change of Character

Map the active swing sequence; wait for a break against that sequence; use displacement/context to assess significance.

Bullish Change of Character example

in a downtrend, price breaks above a prior lower high.

Bearish Change of Character example

in an uptrend, price breaks below a prior higher low.

Change of Character chart examples

Practical trading example

After a bearish sequence, price sweeps a low then breaks the most recent lower high: possible bullish CHoCH.

Common mistakes and important notes

CHoCH is not confirmation of a durable trend reversal by itself. Terminology overlaps with MSS in many communities.

Related ICT concepts

Part of Market Structure. New to ICT? Start with the beginner guide.