A CHoCH occurs when the market shifts from one type of behavior to another, such as transitioning from a trending market to a range-bound market or from a bullish market to a bearish market. This shift in behavior can often be identified through changes in price action, volume, or other technical indicators.
Once a CHoCH has been identified, traders may look for a BOS or "Break of Structure" to confirm the shift in market behavior. A BOS occurs when the market breaks through a key level of support or resistance, indicating that the previous market structure has been broken and a new structure is forming.
Traders may use CHoCH BOS as a signal to adjust their trading strategies or to enter into new trades. However, as with any trading strategy, it is important to exercise caution and to always have a plan for managing risk.
Once a CHoCH has been identified, traders may look for a BOS or "Break of Structure" to confirm the shift in market behavior. A BOS occurs when the market breaks through a key level of support or resistance, indicating that the previous market structure has been broken and a new structure is forming.
Traders may use CHoCH BOS as a signal to adjust their trading strategies or to enter into new trades. However, as with any trading strategy, it is important to exercise caution and to always have a plan for managing risk.