Understanding CHoCH (Change of Character) in Smart Money Concepts

What is CHoCH?

• Definition: CHoCH (Change of Character) refers to the point in price action where the market
shifts from one trend direction to another. It indicates the transition between bullish and
bearish structures or vice versa.

• Importance: It is an early signal of a potential trend reversal, helping traders identify new
trading opportunities.

Key Features of CHoCH:

1. Structure Change:

o In an uptrend, CHoCH occurs when a higher low (HL) is replaced by a lower high (LH) or
lower low (LL).

o In a downtrend, it happens when a lower high (LH) is replaced by a higher low (HL) or
higher high (HH).

2. Transition Point:

o Unlike BOS, which confirms continuation, CHoCH marks the end of a trend and the
beginning of a new one.

3. Market Context:

o CHoCH is best observed near significant liquidity zones, such as support/resistance

levels or order blocks.

How to Identify CHoCH:

1. Step 1: Analyze Current Trend

o Determine whether the market is in an uptrend, downtrend, or ranging.

o Use higher timeframes to establish the dominant trend.

2. Step 2: Spot Structural Breaks

o Look for a break of the most recent high/low that invalidates the previous trend
structure.

3. Step 3: Confirm the Reversal

o Observe whether the price forms a new structure (e.g., a higher low or lower high).

o Use candlestick confirmation (e.g., engulfing patterns) or confluence indicators like

volume or RSI divergence.
CHoCH Trading Strategy:

1. Entry Setup:

o Wait for the CHoCH to form and for price to retest the broken structure or a nearby
order block.

o Confirm the reversal with price action signals on lower timeframes.

2. Stop-Loss Placement:

o Place your stop-loss just below the last structural low (for buys) or above the last high
(for sells).

3. Take-Profit Levels:

o Use Fibonacci extensions or target the next significant support/resistance zone.

Tips for Trading CHoCH:

1. Pair with Liquidity Concepts:

o Look for liquidity grabs (stop hunts) before the CHoCH occurs. These often indicate
institutional activity.

2. Use Timeframe Analysis:

o Identify CHoCH on higher timeframes for stronger signals and use lower timeframes for
precise entries.

3. Volume Confirmation:

o Check for volume spikes during the CHoCH event, as this indicates stronger momentum
behind the reversal.

4. Confluence with Indicators:

o Combine CHoCH with divergence (RSI, MACD) or moving averages to confirm the shift in
momentum.

CHoCH vs BOS:

Feature CHoCH BOS

Purpose Signals a trend reversal Confirms trend continuation

Trend Direction Shift from bullish to bearish (or vice versa) Continuation in the same direction
Feature CHoCH BOS

Timing Early signal of reversal Later confirmation

Here are additional tips for mastering CHoCH (Change of Character) in Smart Money Concepts,
focusing on advanced applications and strategies:

Advanced Tips for CHoCH Mastery

1. Combine CHoCH with Order Blocks

• Tip: CHoCH often aligns with institutional order blocks (areas where large traders enter
orders). Wait for price to return to the order block after CHoCH for a lower-risk entry.

o Example: In a downtrend, if CHoCH occurs, look for a bullish order block near the last
low for potential long trades.

2. Look for Multiple CHoCHs

• Tip: A single CHoCH can sometimes result in a temporary pullback. Multiple CHoCHs on higher
timeframes add confirmation of a genuine trend reversal.

o Why? A consistent shift in structure across timeframes indicates a stronger probability

of a sustained move.

3. Identify CHoCH in Liquidity Zones

• Tip: CHoCH is most effective near areas of high liquidity, such as support, resistance, or key
psychological levels.

o Why? Liquidity sweeps at these levels often precede CHoCH, confirming a genuine
reversal.

4. Use Divergence for Early Warning

• Tip: Spot divergence (e.g., RSI or MACD) as a leading indicator before a CHoCH occurs.

o Example: If price forms a lower low but RSI forms a higher low, it suggests weakening
bearish momentum, potentially leading to a bullish CHoCH.

5. Trade with Higher Timeframe Confirmation

• Tip: Confirm CHoCH on higher timeframes (e.g., 4H or Daily) for stronger trends and use lower
timeframes (e.g., 15M or 1H) for precise entries.

o Why? This avoids false signals often seen on smaller timeframes.

6. Anticipate Fakeouts
 • Tip: CHoCH can sometimes lead to false breakouts. Validate the move with strong momentum
(large candles, high volume) or a clear retest of the broken level.

7. Align with Market Sessions

• Tip: CHoCH signals are more reliable during high-liquidity sessions, such as the London and
New York overlaps in forex trading.

o Why? Institutional activity is concentrated in these periods, reducing noise.

8. Use CHoCH in Range-Bound Markets

• Tip: In ranging markets, CHoCH can signal the breakout direction. Wait for price to break the
range boundaries and form a CHoCH before trading.

o Why? This confirms the start of a new trend out of the consolidation zone.

9. Incorporate Risk Management

• Tip: Always use a stop-loss slightly below the last low (for a buy) or above the last high (for a
sell) after CHoCH to protect against invalidation.

o Why? Proper risk placement ensures that small losses won’t affect your overall
performance.

10. Refine Entry with Lower-Timeframe BOS

• Tip: After spotting a CHoCH on a higher timeframe, wait for a lower-timeframe BOS for an
optimal entry.

o Example: A 4H CHoCH confirmed by a 15M BOS strengthens the case for entry.

Visualizing CHoCH in Practice

1. Before the CHoCH:

o Identify the prevailing trend and liquidity areas.

o Watch for price to reject or grab liquidity near significant levels.

2. During the CHoCH:

o Confirm the break of the last significant high/low.

o Look for a shift in market momentum, indicated by volume, candlestick strength, or

divergence.

3. After the CHoCH:

o Wait for a retest of the broken level or the origin of the move (e.g., an order block).

o Enter the trade with confluence (candlestick patterns, Fibonacci levels, etc.).
Common Mistakes to Avoid

1. Relying on One Timeframe:

o Always cross-check CHoCH across multiple timeframes to avoid false signals.

2. Ignoring Market Conditions:

o Avoid trading CHoCH in low-volatility periods or without institutional activity (e.g.,

during holidays or outside active sessions).

3. Chasing the Move:

o Never enter immediately after CHoCH without waiting for retests or confirmations.

Continuing with more advanced tips for trading CHoCH (Change of Character) and refining your Smart
Money Concepts strategy:

11. Monitor Market Sentiment with News and Events

• Tip: Always keep an eye on market sentiment through economic news or central bank
announcements around CHoCH occurrences. A CHoCH during major news events (like NFP or
GDP releases) can indicate a stronger market shift.

o Why? These events often trigger sharp moves and provide the liquidity necessary for a
CHoCH to be reliable.

o Example: If the market breaks a key structure during an economic announcement, it

could signal a larger institutional shift.

12. Use Volume as a Confluence Tool

• Tip: Check for volume spikes at the time of a CHoCH. A change in structure backed by higher
volume often indicates that institutions are involved, lending more credibility to the reversal.

o Why? High volume suggests conviction in the price movement, validating the CHoCH
signal as a strong trend reversal.

o How to Use: Use volume-based indicators such as On-Balance Volume (OBV) or

Volume Profile to analyze these shifts.

13. Track Order Flow and Liquidity

 • Tip: Before CHoCH forms, liquidity pools are often targeted. Keep track of these liquidity
zones, as CHoCH can occur after price clears these areas.

o Why? Institutions often target liquidity before reversing or continuing the trend, and
spotting these zones can help predict a CHoCH.

o How to Spot: Look for price consolidations or significant wicks around

support/resistance zones where liquidity could be sitting.

14. Observe Market Consolidation for CHoCH

• Tip: Consolidation phases often precede CHoCH. When price ranges in a tight pattern, it
suggests market indecision before a major breakout or reversal.

o Why? A breakout from consolidation with CHoCH confirmation provides a clearer

trend direction and entry point.

o How to Trade: Wait for the price to exit the consolidation zone and confirm the
change of structure with either a bullish or bearish pattern.

15. Track the Ratio of HH (Higher High) to HL (Higher Low) in Uptrend

• Tip: In an uptrend, keep track of the ratio of higher highs (HH) and higher lows (HL). If CHoCH
happens when a higher low fails to form, it is a sign that the bullish structure has broken down
and is potentially reversing.

o Why? If price no longer respects the expected higher low formation, it suggests that
the trend is exhausted and the market could reverse.

o Example: After several HH and HL formations, if the price makes a lower high instead
of a higher low, it marks a bearish CHoCH.

16. Pay Attention to Divergence

• Tip: Look for divergence between price and momentum indicators (like RSI, MACD, or
Stochastic Oscillator) to spot potential CHoCH formations.

o Why? Divergence signals that price is moving in one direction, but momentum is
weakening, often foreshadowing a trend reversal.

o How to Use: For example, if the price is making new highs, but RSI or MACD is making
lower highs, this indicates weakening bullish momentum, suggesting that a CHoCH
could be imminent.

17. Understand the Role of CHoCH in Larger Market Cycles

 • Tip: CHoCH can play a key role in identifying larger market cycle shifts. In a longer-term
market cycle, CHoCH can signal the end of one cycle (e.g., accumulation or distribution) and
the start of another.

o Why? Identifying a CHoCH in the context of broader market cycles helps you
anticipate the longer-term trend, which can offer larger reward-to-risk ratios.

o Example: If you see a CHoCH on the daily or weekly chart, look for further
confirmation (BOS, volume, liquidity) to align with the broader market cycle.

18. Risk Management for CHoCH Trades

• Tip: Use tight stop-losses based on structural levels for CHoCH setups. Since these reversals
are often fast-moving, it’s essential to set stop-losses just below/above the last swing point to
avoid being stopped out by minor fluctuations.

o Why? Tight stops help minimize risk, especially in volatile markets where false
breakouts are common.

19. Combine CHoCH with Support and Resistance Zones

• Tip: Always align CHoCH with significant support and resistance levels to improve the
probability of success.

o Why? CHoCH at key levels increases the chances that the reversal will hold and lead to
a sustained trend change.

o Example: If a bearish CHoCH forms at a significant resistance level, it strengthens the

case for a reversal.

20. Monitor Psychological Levels

• Tip: Pay attention to psychological price levels (e.g., 1.2000 in forex). CHoCH occurring at these
levels often signals that price is likely to reverse, as traders often place stop-losses and limit
orders around these levels.

o Why? Psychological levels tend to hold significant amounts of liquidity, which can
trigger sharp moves after a CHoCH forms.

Additional Resources to Explore:

1. Trading Communities and Forums: Join forums like Trade2Win or Elite Trader to discuss
CHoCH setups with other traders and gain insights on how others apply it in real-time trading.
 2. Books and Courses: Consider studying resources like "The Inner Circle Trader" by ICT or other
Smart Money Concepts courses that offer in-depth knowledge on CHoCH and BOS trading
strategies.

3. Backtesting Software: Utilize tools like TradingView or ForexTester to practice spotting CHoCH
formations in past price action.

Here are some additional, in-depth tips and strategies for trading CHoCH (Change of Character) and
integrating them with Smart Money Concepts:

21. Understanding Liquidity Runs Before CHoCH

• Tip: Before a CHoCH occurs, look for liquidity runs (price movements that target stop losses or
large orders). These often precede a CHoCH as institutions push the market to flush out weak
hands before reversing the price direction.

o Why? Liquidity runs create opportunities for institutions to enter at favorable levels
before reversing the trend.

o Example: Price runs to a recent swing low before reversing, signaling that liquidity was
targeted and a CHoCH is in progress.

22. Understanding the Role of Accumulation and Distribution in CHoCH

• Tip: Watch for accumulation (in an uptrend) and distribution (in a downtrend) phases before
CHoCH. When price has been accumulating or distributing for a while, a CHoCH may indicate
the end of the phase and the start of a new trend.

o Why? These phases often indicate that big players are positioning themselves for a
trend change, and the CHoCH is the first signal of that.

o How to Spot: Look for long periods of consolidation or choppy price action. After the
CHoCH, the market is likely to make a significant move in the opposite direction.

23. Watch for Retests Post-CHoCH

• Tip: After a CHoCH occurs, price may retest the broken structure (either a high or low), and
this can present a better entry with lower risk. The retest often provides a more favorable
risk-to-reward ratio.

o Why? The retest confirms that the price has established the new trend direction and
allows for confirmation before entering the market.
 o Example: After a bullish CHoCH, wait for the price to pull back to the previous
resistance (now support) before entering a long position.

24. Use the Structure of the Market to Identify CHoCH

• Tip: The market structure dictates when and where CHoCH is most effective. Look for price
making higher highs and higher lows in an uptrend or lower highs and lower lows in a
downtrend, and watch for a breakdown in these patterns as a precursor to CHoCH.

o Why? A break in the higher highs or lower lows confirms that the market character
has changed, marking the beginning of a new trend.

o Example: In an uptrend, after several higher highs and higher lows, a lower high could
signal the start of a bearish CHoCH.

25. The Role of Swing Highs and Swing Lows in CHoCH

• Tip: Swing highs and swing lows play a critical role in identifying CHoCH. The shift from higher
highs to lower highs (or vice versa) signals a change in character. Always track these points as
they indicate trend exhaustion or reversal.

o Why? Swing points provide a clear reference for when the market has changed its
trajectory.

o How to Use: Draw trendlines connecting swing highs or swing lows. When price breaks
these levels, a CHoCH is likely in progress.

26. Use Risk-to-Reward Ratio (RRR) to Assess CHoCH Validity

• Tip: When a CHoCH occurs, always assess the potential risk-to-reward ratio before entering. If
the ratio is too low (e.g., less than 1:2), consider waiting for additional confirmation or a retest
to improve your RRR.

o Why? A high RRR increases the probability of profitability in the long run, so waiting
for a better setup can help optimize your trades.

o How to Use: Calculate your stop-loss placement (just above or below the structure
break) and set a target in alignment with the next key level (support/resistance,
Fibonacci extension).

27. Psychological Influence of CHoCH in the Market

 • Tip: Recognize the psychological impact of CHoCH in the market. Traders often start to panic
when a long-established trend shifts (especially when CHoCH occurs after a prolonged rally or
decline), leading to sharp, impulsive moves.

o Why? Institutions use the emotional reactions of retail traders to their advantage,
triggering false breakouts and reversals. Spotting CHoCH early helps you avoid being
caught in emotional trades.

o Example: A sudden price drop after a bullish trend might cause panic selling, but if
you’ve identified CHoCH, you might anticipate the bullish reversal to follow.

28. Combine CHoCH with Multi-Asset Analysis

• Tip: For additional confirmation, look at multiple correlated assets (e.g., EUR/USD with
USD/JPY or the DXY index) to see if they are showing similar CHoCH signals. Correlation
analysis can improve the likelihood of a successful trade.

o Why? Correlated assets tend to move together, and if multiple instruments show a
CHoCH at the same time, the signal is stronger.

o Example: If EUR/USD shows a bullish CHoCH and USD/JPY shows a bearish CHoCH, this
can strengthen the case for a EUR/USD long position.

29. Use CHoCH to Identify Liquidity Pools

• Tip: Liquidity pools are often triggered just before CHoCH. Look for areas where large orders
may have accumulated (such as below swing lows or above swing highs). Price often runs
through these levels before reversing, indicating the start of a CHoCH.

o Why? These liquidity pools can be used by large institutional traders to trigger price
reversals and create trend changes.

o How to Use: Monitor price action around key support and resistance levels and look
for price to "sweep" liquidity pools before confirming a CHoCH.

30. Combine CHoCH with Other Smart Money Concepts (SMC) Tools

• Tip: Combine CHoCH with tools like order blocks, fair value gaps, and break of structure (BOS)
for a more robust strategy. This allows for confirmation and better context of the market shift.

o Why? These tools complement CHoCH by providing further context and confirmation
of the trend change.

o How to Use: If a CHoCH occurs at or near an order block or after a BOS, it suggests the
change in market character is backed by institutional interest.
By applying these advanced techniques and concepts, you’ll significantly increase the likelihood of
successfully trading Change of Character (CHoCH). Combining multiple strategies, confirming signals,
and understanding the market psychology behind CHoCH will give you a robust edge in your Smart
Money Concepts strategy.

Here are some additional tips and strategies for improving your mastery of CHoCH (Change of
Character) within the context of Smart Money Concepts (SMC):

31. Track the Institutional Timeframes

• Tip: Smart Money often operates on specific timeframes (such as the 4-hour, 1-hour, and daily
charts). Tracking these institutional timeframes can help identify when CHoCH is more likely to
occur.

o Why? Institutions typically focus on higher timeframes, and understanding the shift in
character on these timeframes gives insight into longer-term trends.

o How to Use: Look for CHoCH on higher timeframes, then use lower timeframes (15-
minute, 5-minute) for entry signals. This gives you a clearer understanding of the
overall trend and reduces the risk of trading against larger market moves.

32. Recognize Trend Exhaustion Before CHoCH

• Tip: CHoCH often happens when a trend is reaching exhaustion. This could be due to a series
of unsustainable moves or price moving too far from key levels (like support or resistance).

o Why? A market that has moved too far without retracement may become
overextended, and a CHoCH could signal a reversal or pullback.

o How to Spot: Look for extended candles, divergence, and lack of follow-through.
These signs are often precursors to a CHoCH.

33. Watch for Break of Structure (BOS) Confirmation

• Tip: A CHoCH is often confirmed by a Break of Structure (BOS), where price breaks a previous
high (in a bullish CHoCH) or low (in a bearish CHoCH). The BOS is the final confirmation that
the market has indeed shifted its character.

o Why? BOS validates that the change in character has indeed occurred and helps to
confirm the trend reversal.
 o Example: If you see a bullish CHoCH, wait for a subsequent BOS (price breaking a
previous high) before entering a long trade.

34. Use Fair Value Gaps (FVG) for Confluence

• Tip: Fair Value Gaps (FVG) are areas where price moves too quickly and leaves gaps in the
market structure. These can be used as areas of confluence when a CHoCH occurs.

o Why? When a CHoCH coincides with an FVG, it strengthens the argument that the
market is in a new phase and likely to continue in the new direction.

o How to Use: After a CHoCH forms, look for price to come back and fill the FVG, offering
a more favorable entry point.

35. Watch for Manipulation Zones

• Tip: Institutions often use manipulation zones to trigger retail stop losses before reversing the
market. These zones can be identified as areas where price aggressively moves through
previous support or resistance levels.

o Why? Institutions exploit retail traders by targeting stop losses in these zones,
allowing them to accumulate positions at favorable prices before a reversal, which can
then signal a CHoCH.

o How to Spot: Look for sharp movements that break through significant levels (like
previous highs or lows), followed by a reversal that aligns with a CHoCH.

36. Use Time and Price Analysis to Strengthen CHoCH Signals

• Tip: Time and price analysis can be useful when identifying CHoCH. Look for times when
market volume increases or price aligns with major market events.

o Why? Certain times (such as market open or close, or during major news events) bring
increased liquidity, which can lead to stronger CHoCH formations.

o How to Spot: If price breaks structure during high-impact news or at specific times
(like market open), it is more likely that a CHoCH is happening, as these times bring
more institutional participation.

37. Master the "Smart Money" Timing

• Tip: Institutions often begin their operations early in the market and accumulate positions
over time. Look for CHoCH signals after long periods of accumulation or distribution.
 o Why? Smart Money doesn’t rush into trades. They wait for optimal conditions
(liquidity, key price levels, and market sentiment) before shifting the market direction.

o How to Use: Observe prolonged consolidation (accumulation/distribution) and wait

for a CHoCH to break the range, signaling the start of a new trend.

38. Incorporate Candlestick Patterns for Validation

• Tip: Certain candlestick patterns, like engulfing candles or pin bars, are useful when confirming
CHoCH. These patterns signal a potential change in market sentiment, adding confluence to
your setup.

o Why? Candlestick patterns often highlight shifts in momentum and can serve as early
signs that a CHoCH is about to happen.

o How to Use: After a CHoCH occurs, watch for candlestick patterns that align with the
new trend. For example, a bullish engulfing pattern after a bearish CHoCH is a strong
confirmation of a trend reversal.

39. Implement a Liquidity Hunt Strategy

• Tip: Before the CHoCH, prices often chase liquidity, which may be around recent highs or lows,
or where many retail traders have their stop losses. Recognizing these liquidity zones can
allow you to predict where the CHoCH might happen.

o Why? Understanding where liquidity is held helps you anticipate where market
makers or institutions might push the market before they reverse it.

o How to Use: Look for large wick formations or areas where price has moved sharply in
one direction. These often indicate liquidity zones that are being targeted.

40. Combine Multiple Timeframe Analysis (MTA) for Better Accuracy

• Tip: Combining multiple timeframes when analyzing CHoCH can improve your accuracy in
predicting market direction. Use higher timeframes to identify the overall trend and lower
timeframes for precise entry.

o Why? The higher timeframe provides the context for the market, and the lower
timeframe offers precise entry points that reduce risk.

o How to Use: For example, you might identify a CHoCH on the 4H chart, then use the
15-minute or 30-minute chart to find an optimal entry.
By refining your strategy with these advanced insights, you'll be better equipped to navigate the
complexity of Change of Character (CHoCH) and enhance your Smart Money Concepts trading
approach.

If you'd like more specific examples or need to delve into a particular aspect of these tips (e.g.,
liquidity zones, candlestick patterns), feel free to let me know!

To help you understand and apply Smart Money Concepts (SMC), specifically the Change of Character
(CHoCH) in trading, I'll go through a comprehensive example that covers the tips, techniques, and
concepts discussed earlier. This will include explanations, strategies, and charting insights for better
visualization.

Example of CHoCH in Action with All Tips Applied

Imagine we are looking at a EUR/USD chart (you can apply the same principles to other pairs or assets)
on a 4-hour timeframe. We are trying to identify Change of Character (CHoCH) and trade it with Smart
Money Concepts (SMC). Here's how you can approach it:

Step 1: Understanding Market Structure

• Trend Identification: First, identify the current trend. Let's say EUR/USD has been in an uptrend
for the last few days, making higher highs (HH) and higher lows (HL).

• Price Action: As the market moves, price is respecting these higher highs and higher lows, so the
market is in a bullish structure.

Step 2: Identifying a Potential CHoCH

• Observation: Price has been rising, and the last higher low (HL) was at 1.0900. Now, price breaks
below this level (making a lower low, LL).

• CHoCH Occurrence: A CHoCH occurs when the previous pattern of higher highs and higher lows
shifts, and we get a lower low instead of the expected higher low.

• Why CHoCH: This shift signals that the market might no longer be in a strong uptrend and could
be preparing to reverse or consolidate into a downtrend.

Step 3: Volume and Liquidity Check

• Volume Analysis: At the moment the lower low forms (the CHoCH), we notice an increase in
volume, indicating institutional involvement.
 • Liquidity Sweep: Price has made a sharp drop below 1.0900, suggesting that liquidity at this
level was targeted. A liquidity run often precedes a CHoCH, as institutions hunt for stop orders
around key support levels.

Step 4: Look for Confirmation (Break of Structure - BOS)

• Break of Structure (BOS): After forming a lower low, we wait for confirmation. Price breaks the
last higher high (HH) at 1.1000, signaling that the bullish trend is invalidated and that the trend
has indeed changed.

• BOS Confirmation: With this BOS, you now have confirmation that the market is transitioning to
a new phase (bearish).

Step 5: Waiting for a Retest and Entry

• Retest: After the price breaks the structure, it often retraces back to the previous level of
support (now resistance). In this case, the price moves back to 1.0900, where the previous
higher low was formed.

• Candlestick Pattern: At the 1.0900 level, a bearish engulfing pattern forms on the 4-hour chart,
confirming that sellers are taking control.

Step 6: Entering the Trade

• Entry Point: The bearish engulfing at the 1.0900 resistance is your signal to enter a short
position. Your stop-loss would be placed just above the previous higher high (around 1.1005),
ensuring that you limit your risk if the trend fails.

• Target: Set a target at the next significant support level, say around 1.0700, for a favorable risk-
to-reward ratio (e.g., 1:3 or 1:4).

Step 7: Risk Management

• Risk-to-Reward Ratio (RRR): Your stop-loss is placed at 1.1005, and your target is at 1.0700.
With a distance of 100 pips to the stop-loss and 200 pips to the target, this gives you a 2:1 RRR.

• Smart Money Timing: The trade is placed when the market is likely to see increased volatility
(e.g., during the U.S. trading session or around important news), which supports the idea that
institutions will be active.

Step 8: Monitor Price Action and Adjustments

 • Trailing Stop: As the price moves toward your target, consider using a trailing stop to lock in
profits while allowing the trade to run. If price forms new bearish lows, trail the stop just above
recent highs.

• Reevaluate the CHoCH: Continue to monitor the market for additional CHoCH patterns or BOS
that could affect your trade. If price starts showing bullish strength again, be ready to exit the
position.

Chart Example (Visualization)

If I were to create a chart based on this scenario, you would see:

• Higher highs and higher lows during the uptrend (before CHoCH).

• Lower low marking the CHoCH.

• BOS confirming the trend change.

• Retest at the previous support (now resistance).

• Bearish candlestick pattern for entry.

While I currently can't generate charts, tools like TradingView or MetaTrader can help you visualize
these steps by plotting support/resistance, trendlines, and candlestick patterns.

Final Summary:

• Trend: EUR/USD in an uptrend, then a CHoCH occurs with a lower low.

• Volume: Increased volume at the CHoCH suggests institutional involvement.

• Break of Structure: Price breaks a higher high, confirming the trend shift.

• Retest: Price returns to the previous support (now resistance).

• Candlestick Pattern: A bearish engulfing at 1.0900 confirms entry.

• Risk Management: Set stop-loss at 1.1005, target at 1.0700 for a 2:1 RRR.

By following this structure and practicing with real market data, you can improve your ability to spot and
trade CHoCH using Smart Money Concepts.

Would you like to explore more detailed setups or another example?