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🎯 Strategy#smc#choch#strategy#reversal
M

Market Hawk

Trader ·

SMC Trading Strategy: Entry After Change of Character (CHoCH)

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?
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