VALID CHOCH VS. FAKEOUTS: How to Spot the Difference

A real Change of Character (CHOCH) is one of the most powerful reversal signals—but most traders get faked out. Here’s how to trade it properly:

WHAT MAKES A VALID CHOCH?
1️⃣ Clear Break of Structure

Downtrend reversal: Price breaks & closes above a swing high

Uptrend reversal: Price breaks & closes below a swing low

2️⃣ Strong Momentum Follow-Through

Next candle confirms (no immediate rejection)

Volume spikes on the break

3️⃣ Retest & Hold

Price pulls back to the breakout level but holds as support/resistance

FAKEOUT CHOCH (Avoid These!)
Wick Breaks (no close beyond structure)
Low Volume (no conviction in the move)
No Retest (price just floats without confirmation)

HOW TO ENTRY LIKE A PRO
Aggressive: Enter on the first close beyond structure (small position)

Conservative: Wait for the retest + hold (higher probability)

Confirmation: Add on a strong follow-through candle

REAL-CHART EXAMPLE (See Image Below )
Before CHOCH: Downtrend making lower highs/lows

CHOCH Trigger: Break & close above swing high

Retest: Pullback to old resistance (now support)

Result: Strong reversal

COMMENT “CHOCH” IF YOU’VE BEEN FAKED OUT BEFORE!

#PriceAction #SmartMoneyConcepts
🚨 VALID CHOCH VS. FAKEOUTS: How to Spot the Difference A real Change of Character (CHOCH) is one of the most powerful reversal signals—but most traders get faked out. Here’s how to trade it properly: ✅ WHAT MAKES A VALID CHOCH? 1️⃣ Clear Break of Structure Downtrend reversal: Price breaks & closes above a swing high Uptrend reversal: Price breaks & closes below a swing low 2️⃣ Strong Momentum Follow-Through Next candle confirms (no immediate rejection) Volume spikes on the break 3️⃣ Retest & Hold Price pulls back to the breakout level but holds as support/resistance 🚨 FAKEOUT CHOCH (Avoid These!) ✖️ Wick Breaks (no close beyond structure) ✖️ Low Volume (no conviction in the move) ✖️ No Retest (price just floats without confirmation) 💰 HOW TO ENTRY LIKE A PRO Aggressive: Enter on the first close beyond structure (small position) Conservative: Wait for the retest + hold (higher probability) Confirmation: Add on a strong follow-through candle 📌 REAL-CHART EXAMPLE (See Image Below 👇) Before CHOCH: Downtrend making lower highs/lows CHOCH Trigger: Break & close above swing high Retest: Pullback to old resistance (now support) Result: Strong reversal 👇 COMMENT “CHOCH” IF YOU’VE BEEN FAKED OUT BEFORE! #PriceAction #SmartMoneyConcepts
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