Change of Character Plus (CHoCH+)
Identification Rules
How to spot CHoCH+ on your charts. The specific criteria that define this pattern.
- Bullish CHoCH+: Low (L) → Lower High (LH) → Failed Lower Low (LL) → Higher High (HH) breaking previous LH
- Bearish CHoCH+: High (H) → Higher Low (HL) → Failed Higher High (HH) → Lower Low (LL) breaking previous HL
- Price must fail to form the expected continuation pattern before reversing
- The failure must be followed by a clear break in the opposite direction
Entry Rules
Optimal timing and price levels for entering CHoCH+ trades with precision.
- Wait for CHoCH+ formation to complete before considering entries
- Enter on pullbacks to key areas after CHoCH+ forms
- Look for entries at IFVGs, Order Blocks, or demand/supply zones
- Enter in direction of the new trend bias established by CHoCH+
Stop Rules
Where to place protective stops to limit risk and preserve capital effectively.
- Place stops beyond the failed swing point
- Use the opposite side of the pullback zone as stop level
Target Rules
Strategic profit-taking levels and methods to maximize CHoCH+ trade returns.
- Target previous significant highs/lows in direction of new trend
- Use risk-reward ratios appropriate for timeframe being traded
Confluence Factors
Additional signals that strengthen CHoCH+ setups and boost win rates.
- Inversion Fair Value Gaps (IFVG) for pullback entries
- Order Blocks aligning with pullback zones
- Supply and demand zones at key levels
- Multiple timeframe alignment
- Liquidity levels being swept before CHoCH+ formation
Failure Modes
Common scenarios where CHoCH+ patterns fail and how to recognize them early.
- False CHoCH+ signal
- Weak follow-through
- Immediate reversal
Common Mistakes
Typical trading errors with CHoCH+ and practical solutions to avoid them.
- Entering immediately upon CHoCH+ formation
- Confusing regular CHoCH with CHoCH+
- Ignoring timeframe context
- Not waiting for complete pattern formation