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?
1ïžâŁ Clear Break of Structure
Downtrend reversal: Price breaks & closes above a swing high
Uptrend reversal: Price breaks & closes below a swing low
2ïžâŁ Strong Momentum Follow-Through
Next candle confirms (no immediate rejection)
Volume spikes on the break
3ïžâŁ 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
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?
1ïžâŁ Clear Break of Structure
Downtrend reversal: Price breaks & closes above a swing high
Uptrend reversal: Price breaks & closes below a swing low
2ïžâŁ Strong Momentum Follow-Through
Next candle confirms (no immediate rejection)
Volume spikes on the break
3ïžâŁ 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
đš 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:
â
WHAT MAKES A VALID CHOCH?
1ïžâŁ Clear Break of Structure
Downtrend reversal: Price breaks & closes above a swing high
Uptrend reversal: Price breaks & closes below a swing low
2ïžâŁ Strong Momentum Follow-Through
Next candle confirms (no immediate rejection)
Volume spikes on the break
3ïžâŁ Retest & Hold
Price pulls back to the breakout level but holds as support/resistance
đš FAKEOUT CHOCH (Avoid These!)
âïž Wick Breaks (no close beyond structure)
âïž Low Volume (no conviction in the move)
âïž No Retest (price just floats without confirmation)
đ° 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
đ REAL-CHART EXAMPLE (See Image Below đ)
Before CHOCH: Downtrend making lower highs/lows
CHOCH Trigger: Break & close above swing high
Retest: Pullback to old resistance (now support)
Result: Strong reversal
đ COMMENT “CHOCH” IF YOU’VE BEEN FAKED OUT BEFORE!
#PriceAction #SmartMoneyConcepts

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