forked from animatedread/Warrior_EA
661 B
661 B
Change of Character (CHoCH)
The Change of Character (Ch.19) marks a critical transition between trend and consolidation phases. The book identifies two CHoCH moments in a complete cycle:
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First CHoCH — Trend → Range: In accumulation, a downtrend shifts into sideways movement (Phase A). This is detected when Preliminary Support and Selling Climax events appear in sequence. In distribution, an uptrend flattens into a range marked by Preliminary Supply and Buying Climax.
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Second CHoCH — Range → Trend: The SOS/SOW breakout that breaks the structure boundary signals the transition from consolidation back into a trending state.