CHOCH + BOS: The Ultimate Trend Reversal Combo

When a Change of Character (CHOCH) is followed by a Break of Structure (BOS), it creates one of the highest-probability trend reversal setups. Here's how to trade it:

THE SEQUENCE THAT MATTERS
1️⃣ CHOCH (Change of Character)

Price breaks and closes beyond a key swing point

Signals potential trend exhaustion

2️⃣ Retest & Confirmation

Price pulls back to test the breakout level

Holds as new support/resistance

3️⃣ BOS (Break of Structure)

Price takes out the next swing high/low

Confirms the new trend direction

WHY THIS WORKS
CHOCH shows the first sign of weakness
Retest proves the level has flipped
BOS confirms smart money is committed

FAKE REVERSAL TRAPS
CHOCH with no follow-through
BOS without prior CHOCH (likely continuation)
Low volume on breaks

HOW TO TRADE IT
First Entry: On CHOCH close (small position)

Add Position: On successful retest

Max Confidence: On BOS confirmation

REAL CHART EXAMPLE (See Image)

Downtrend makes lower highs

CHOCH: Closes above swing high

Retest: Holds as support

BOS: Breaks next swing high → Rally begins

COMMENT "TREND REVERSAL" IF YOU'LL WATCH FOR THIS!

#SmartMoneyConcepts #PriceAction
πŸ”₯ CHOCH + BOS: The Ultimate Trend Reversal Combo πŸ”₯ When a Change of Character (CHOCH) is followed by a Break of Structure (BOS), it creates one of the highest-probability trend reversal setups. Here's how to trade it: 🎯 THE SEQUENCE THAT MATTERS 1️⃣ CHOCH (Change of Character) Price breaks and closes beyond a key swing point Signals potential trend exhaustion 2️⃣ Retest & Confirmation Price pulls back to test the breakout level Holds as new support/resistance 3️⃣ BOS (Break of Structure) Price takes out the next swing high/low Confirms the new trend direction πŸ’‘ WHY THIS WORKS βœ… CHOCH shows the first sign of weakness βœ… Retest proves the level has flipped βœ… BOS confirms smart money is committed 🚨 FAKE REVERSAL TRAPS βœ–οΈ CHOCH with no follow-through βœ–οΈ BOS without prior CHOCH (likely continuation) βœ–οΈ Low volume on breaks πŸ’° HOW TO TRADE IT First Entry: On CHOCH close (small position) Add Position: On successful retest Max Confidence: On BOS confirmation πŸ“Œ REAL CHART EXAMPLE (See Image) Downtrend makes lower highs CHOCH: Closes above swing high Retest: Holds as support BOS: Breaks next swing high → Rally begins πŸ‘‡ COMMENT "TREND REVERSAL" IF YOU'LL WATCH FOR THIS! #SmartMoneyConcepts #PriceAction
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