Change of Character Plus (CHoCH+) Explained: Definition & Strategy

A change of character plus (CHoCH+) is a stronger version of the change of character (CHoCH) signal. It indicates a high-conviction shift in market structure, suggesting the current trend is likely reversing. A bullish CHoCH+ signals a shift from bearish to bullish structure. A bearish CHoCH+ signals a shift from bullish to bearish.

The key difference between a CHoCH and a CHoCH+ is the extra structural requirement. A CHoCH+ demands that price fails to reach the next expected extreme (a higher high in a downtrend, or a lower low in an uptrend) before reversing. That failure makes the signal more convincing. It shows that momentum has stalled before the breakout, not just after a weak attempt.

How to Find a Change of Character Plus (CHoCH+)

A CHoCH+ forms when price fails to continue making higher highs or lower lows before reversing. This failure signals a strong shift in order flow, indicating a potential reversal of the current trend.

The distinction from a standard CHoCH: a CHoCH forms when a break of structure fails. A CHoCH+ goes one step further: price also fails to reach the next structural extreme before breaking in the opposite direction.

Bullish CHoCH+

A bullish CHoCH+ forms within a downtrend. The sequence is: a low (L), followed by a lower high (LH), then a failed lower low (price does not make a new low), and finally a break above the previous lower high (HH). The critical element is the failed lower low. Price was expected to continue lower but could not. That failure, followed by the break above the LH, is what separates a CHoCH+ from a standard CHoCH.

A bullish CHoCH+ is invalid if price does successfully make a new lower low before reversing, in which case it would be a standard CHoCH at most.

Bearish CHoCH+

A bearish CHoCH+ forms within an uptrend. The sequence is: a high (H), followed by a higher low (HL), then a failed higher high (price does not make a new high), and finally a break below the previous higher low (LL). The failed higher high is the key. Sellers stepped in before price could extend the trend, then drove it below the previous higher low.

A bearish CHoCH+ is invalid if price does successfully make a new higher high before reversing.

Trading Using a CHoCH+

A CHoCH+ is used as an entry or exit signal. Because it requires more structural failure before triggering, it carries more conviction than a standard CHoCH. A trader long in a bullish trend may use a bearish CHoCH+ as a signal to exit. A trader short may use a bullish CHoCH+ to cover and consider reversing.

The CHoCH+ also works as a trend bias signal. Once a CHoCH+ forms, the trader establishes a directional bias and waits for a pullback entry at a key level rather than chasing the initial move.

Common Strategy Using a CHoCH+

After a bullish CHoCH+ forms, the bias shifts long. Rather than entering immediately, wait for price to pull back into a key support area: a bullish inversion fair value gap (IFVG), a bullish order block, or a demand zone.

When price retraces into one of these areas following the bullish CHoCH+, buyers who created those zones are expected to re-engage. Enter long at the zone with a stop below it and size for a defined risk-to-reward target. The CHoCH+ gives you the directional bias. The confluence zone gives you the entry.

What Is the Difference Between a CHoCH and a CHoCH+?

A standard CHoCH forms when a break of structure fails: price does not reach the next higher low (in a downtrend flip) or lower high (in an uptrend flip) before reversing. It is an early signal that the trend may be changing.

A CHoCH+ requires one additional step of failure. Price also fails to make the next expected extreme: the lower low in a downtrend or the higher high in an uptrend. Because this represents a deeper breakdown in trend momentum before the reversal, a CHoCH+ is considered a stronger signal. It forms less frequently, but when it does, it suggests a more decisive shift in order flow.

What Timeframe Is Best for a CHoCH+?

CHoCH+ works across all timeframes. Intraday traders most commonly use it on the 1-minute, 5-minute, and 30-minute charts. The 30-minute is useful for identifying larger trend shifts. Shorter timeframes like the 1-minute and 5-minute suit scalping-style strategies.

As with all SMC concepts, higher timeframe CHoCH+ formations carry more weight. A bearish CHoCH+ on the daily or four-hour chart suggests a more significant structural shift than one on the five-minute. Top-down analysis: identify the CHoCH+ on a higher timeframe, then drop lower to time your pullback entry at a key zone.

This article is for educational purposes only and does not constitute financial advice. Trading involves significant risk of loss. Do your own research and consult a licensed financial advisor before making any trading decisions.

Browse more trading concept guides on the TrendTrader blog.