🎯 Strategy#smc#choch#strategy#reversal
M
Market Hawk
Trader ·
SMC Trading Strategy: Entry After Change of Character (CHoCH)
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The Change of Character (CHoCH) is one of the highest probability entries in Smart Money Concepts. Here's how to trade it systematically:
**What is a CHoCH?**
In a downtrend (lower highs, lower lows), a CHoCH occurs when price breaks above the last significant lower high for the FIRST TIME. This signals a potential trend reversal.
**Entry method:**
1. Confirm the CHoCH: 1H candle closes above the previous lower high
2. Wait for a pullback: Price retraces to the OB created by the CHoCH candle
3. Look for bullish confluence at the OB: rejection wick, FVG inside the OB
4. Enter long on confirmation of the OB hold
**Entry:** At the 50% level of the CHoCH OB
**Stop Loss:** Below the OB low (invalidates the structure shift)
**Take Profit 1:** Next swing high
**Take Profit 2:** HTF liquidity target
**Risk/Reward:** Minimum 1:2, often 1:3–1:5
The hardest part: distinguishing a true CHoCH from a liquidity sweep. The confirmation candle close is critical.
Do you trade CHoCH entries? What's your confirmation method?