MSS vs CHOCH – Smart Money Trading

Are you confused between the ICT Market Structure Shift – MSS and Change of Character (CHOCH)?

Don’t worry in this blog post we will teach you all about the MSS vs CHOCH. After reading this article you will be able to differentiate between MSS and CHOCH like a pro.

What is Market Structure Shift(MSS)?

To understand the ICT-MSS you must know about the ICT Swing Low & ICT Swing High .

Market structure shift is an ICT concept which indicates the short term change in the delivery of price indicated by the break of ICT Swing Point.

It is basically the initial signal of changing market direction which may turn to a long term change in the trend of price.

Mostly traders confuse it with the change of character(CHOCH) and which may result in losing their trades.

(I) Bullish Market Structure Shift happens when price break a Swing High Point. It indicates that price delivery for the short term has changed to buy-side.

This may be due to price going to take inducement or reach a higher time-frame PD Array and it may result in Change of Character too.

(II) Bearish Market Structure Shift happens when price break a Swing Low point. It indicates that price delivery for the short term has changed to sell-side.

This may be due to price going to take inducement or reach a higher time-frame PD Array and it may result in Change of Character too.

What is Change of Character(CHOCH)?

To understand the Change of character(CHOCH) you must know about the market structure and the valid highs and lows of price, for which I will refer you to the Market Structure Playlist.

Change of Character(CHOCH) is a smart money concept which indicates the log-term change in the delivery of price like the change of market trend.

It is indicated by the break of previous market structure in opposite direction like bullish to bearish or bearish to bullish.

(I) In bullish market structure Change of Character(CHOCH) is indicated by the break of previous higher low resulting in a new lower low.

It indicates that the trend of price has changed from bullish to bearish.

(Ii) In bearish market structure Change of Character(CHOCH) is indicated by the break of previous lower high resulting in a new higher high.

It indicates that the trend of price has changed from bearish to bullish.

Does CHOCH Always Result in Change of Trend?

As we all know trading is the game of probabilities and nothing is certain here. So each & every concept including CHOCH gives us a high probability of happening.

And yes it may fail too but it does not hurt because their success ratio is more than their failure ratio so at the end it result in profits.

Final Thoughts

Trading is risky so always trade according to your equity and never trade without stop-loss.

Feel free to ask any question in comments and your suggestions are also welcome.