Reading ranges before you hunt for a change of character

Desk with financial reports and a laptop showing market data

Change of character (CHOCH) is often taught as a single candle event. In practice it is a claim that the owning structure — trend or range — has lost control.

Before you hunt for CHOCH, draw the active range boundaries or the last protected swing. Without that map, every sharp candle looks like a regime shift. With it, you can ask whether the move merely tagged liquidity or actually invalidated the prior owner.

In clinic drills we hide the labels and ask participants to state the owning structure first. Only then do they mark a candidate CHOCH. Accuracy improves quickly when the sequence is enforced.

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