CHoCH

CHoCH marks the first signal that market structure may be shifting from continuation to reversal. In an uptrend, if price breaks below the most recent valid swing low (instead of making a higher high), that's a CHoCH — suggesting buying momentum may be fading.

The key difference from BOS is direction: BOS breaks in the direction of the existing trend, CHoCH breaks against it. A single CHoCH doesn't confirm a full reversal — traders typically wait for a follow-up BOS in the new direction before treating the trend change as confirmed.

Many ICT/SMC traders combine CHoCH with liquidity sweeps for confirmation: if the CHoCH forms right after a sweep of prior high/low liquidity, the signal is often considered more reliable, as it suggests smart money may have completed accumulation or distribution.

In practice, a CHoCH is often treated as a 'watch zone' rather than an immediate entry trigger — traders raise alertness and reduce size at the CHoCH point, waiting for subsequent structure and Order Block confluence before committing to a counter-trend position.