Forex glossary
Change of Character (ChoCh)
ChoCh is an SMC label for breaking a selected swing low within an upward structure or a swing high within a downward structure. It flags a possible structural change, while BoS usually labels a break with the trend. Pivot and break definitions affect the classification.
Illustrative example
How does it work in practice?
Assume EUR/USD forms higher lows at 1.0950 and 1.0980. A close below 1.0980 may qualify as ChoCh under the chosen rule; it does not yet establish a sequence defining a downtrend.
A case to work through
Two swing scales
Hypothetically, the major low is 100 and an internal low is 104; price closes at 103.
- The close breaks 104 but remains above 100.
- An internal rule may mark ChoCh while a major-structure rule does not yet do so.
What follows? State the scale and break condition alongside the label.
Example boundary: A single label establishes neither a new trend nor participant intent.
Scale changes the label
Text description of the diagram
- Internal swing: A local level selected by the shorter rule.
- Major swing: Broader structure may have a different boundary.
- Break condition: Wick or close under the written method.
A useful distinction
Change of Character (ChoCh) / Trend
ChoCh marks a specified counter-structure break; trend describes a broader sequence on the chosen scale.
Check your understanding
Compare the same close against two structural scales.
Show the answer and explanation
Different selection of the 104 or 100 low
Each rule checks a different level.
Market data and interpretation limits
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Related terms
Sources and documentation
- LuxAlgo – market structure
This implementer's internal/major swing and BOS/ChoCh labels.
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The example illustrates the mechanism. Check current account conditions and instrument specifications with the provider.