Many traders enter trades too early because they mistake a small pullback for a trend reversal.
In this example, the market first forms a bearish structure with Lower Highs (LH) and Lower Lows (LL). After that, price breaks the previous Lower High, creating a Change of Character (CHOCH), which is the first sign of a potential Trend Change.
However, a CHOCH alone is not enough. Wait for additional confirmation such as:
✅ Liquidity Sweep (IDM)
✅ Break of Structure (BOS)
✅ Strong Order Block
✅ Price reaction from key support/resistance or Fibonacci levels
The chart demonstrates how market structure helps identify a possible trend reversal before looking for buying opportunities.
Key Learning:
Understand the current market structure first.
Wait for a confirmed CHOCH (Trend Change).
Don't buy or sell based on a single candle.
Combine CHOCH with confluence for higher-probability setups.
📚 This chart is shared for educational purposes only and is not financial advice. Always use proper risk management before taking any trade.
#Trading #Forex #AUDUSD #MarketStructure #CHOCH #TrendChange #BOS #SmartMoneyConcepts #SMC #PriceAction #TechnicalAnalysis #Education #TradingView
In this example, the market first forms a bearish structure with Lower Highs (LH) and Lower Lows (LL). After that, price breaks the previous Lower High, creating a Change of Character (CHOCH), which is the first sign of a potential Trend Change.
However, a CHOCH alone is not enough. Wait for additional confirmation such as:
✅ Liquidity Sweep (IDM)
✅ Break of Structure (BOS)
✅ Strong Order Block
✅ Price reaction from key support/resistance or Fibonacci levels
The chart demonstrates how market structure helps identify a possible trend reversal before looking for buying opportunities.
Key Learning:
Understand the current market structure first.
Wait for a confirmed CHOCH (Trend Change).
Don't buy or sell based on a single candle.
Combine CHOCH with confluence for higher-probability setups.
📚 This chart is shared for educational purposes only and is not financial advice. Always use proper risk management before taking any trade.
#Trading #Forex #AUDUSD #MarketStructure #CHOCH #TrendChange #BOS #SmartMoneyConcepts #SMC #PriceAction #TechnicalAnalysis #Education #TradingView
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.