Category: CHoCH & BoS: The Market’s Footprint

Tired of being the last one to a trend reversal? By the time your MACD or moving averages finally cross over, the real, explosive move is already 50% done. That’s because you’re using lagging indicators. You’re looking in the rearview mirror.

It’s time to start trading with leading signals. Welcome to CHoCH and BoS.

These two concepts are the foundation of Smart Money Concepts (SMC) and are designed to help you “read the footprint” of the market. They show you what the structure of the price is telling you, right now.

1. BoS (Break of Structure): Think of this as the “green light.” In a strong uptrend, the market makes a high, pulls back, and then makes a new high. That new high is a Break of Structure. It’s a simple, powerful confirmation that the trend is healthy and continuing.
2. CHoCH (Change of Character): This is the “yellow light”—your first, most important warning sign. Imagine that same uptrend. Price pulls back, but this time, the next rally is weak and fails to make a new high. Then, it drops and breaks the last swing low. That is a Change of Character. It’s the first clue that the buying pressure is exhausted and the bears are taking control.

The Nikvest Edge is to stop being the “liquidity” and start being the “hunter.” While retail traders are still trying to “buy the dip” in a trend that just showed a CHoCH, you’ll be one step ahead. You’ll see the CHoCH, recognize the character has changed, and wait for the first rally in the new downtrend to hunt for a short. This isn’t about indicators; it’s about understanding the raw story price is telling you.