Change of Character (ChoCh)

Change of Character (ChoCh) is a signal in Smart Money Concepts (SMC) that flags a potential trend reversal. It occurs when price breaks the most recent significant low in an uptrend (or high in a downtrend), violating the prior structure of higher lows or lower highs. Unlike a Break of Structure (BoS), which confirms continuation, a ChoCh warns that the direction may be changing.