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
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
🔥 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

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