Market Structure
"Discover the secrets behind technical analysis of trading: BOS (Break of Structure) Vs ChoCh (Change of Character)"
To have a correct reading of the price structure and direction, it is necessary to learn to identify the BOS and CHOCH.
ChoCH: Change of Character refers to a situation where market behavior suddenly changes. It can be caused by macroeconomic events, important news, changes in government policies, among other factors. A change in character may indicate that previous market trends are no longer valid and that new approaches and strategies are needed to operate in the market.
BOS: Break of Structure is a technical pattern that occurs when the price of an asset breaks a major support or resistance level on the chart. This event indicates a significant change in price direction and can be a signal for traders to open a position in the market.
Both concepts are useful for traders because they can help identify investment opportunities and make informed decisions. Traders using technical analysis often look for BOS (break of structure) and ChoCh (change of character) on price charts to identify potential changes in market direction and adapt their strategies accordingly.
Remember to follow me if you want to learn more about this strategy since I will be explaining it in depth in several articles so you can make decisions about your investment.
