// Definition
A Change of Character is the first break of structure against the current trend, an early sign that the trend may be reversing.
Explained simply
In an uptrend, the first close below the most recent higher low is a Change of Character. The market has stopped behaving like an uptrend. The same applies in reverse for a downtrend.
It is an early warning, not a guarantee. Confirmation usually comes when price then fails to make a new high and forms a lower high. A CHoCH that forms on weak volume is more likely to fail.
Tip
Treat a CHoCH as a reason to stop buying, not as an automatic reason to sell. Wait for confirmation.
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For education only, not financial advice. Trading is risky and you can lose money.