In ICT and Smart Money Concepts (SMC), MSS and CHOCH are two important market structure terms.
They help traders spot early trend changes and potential entry points.
Let’s break them down:
- CHOCH = Change of Character
- MSS = Market Structure Shift
At first glance, both seem similar — but there’s a key difference.
1. CHOCH – Change of Character in ICT
CHOCH is the first sign that the market might be reversing.
It occurs when price breaks a minor high or low, going against the current trend.
This signals a possible weakness in the trend.
1. Example: Change of Character in ICT
Let’s say EUR/USD is in a downtrend.
You see a series of lower highs and lower lows.
Suddenly, price breaks a recent lower high.
This is a CHOCH — a sign that the trend may shift to bullish.
But this doesn’t confirm a full reversal yet — it’s just the first signal.
2. MSS – Market Structure Shift in ICT
MSS is the confirmation of the trend change.
It occurs when price breaks a key high or low that defines the current trend — not just a minor one.
MSS shows Smart Money has taken control of the market direction.
1. Example: MSS – Market Structure Shift in ICT
After the CHOCH in the above example, price pulls back and then makes a higher low, followed by a break above a major swing high.
This is your MSS — the official market structure shift from bearish to bullish.
Now, you have a clear sign that the trend has reversed.
3. Difference Between CHOCH and MSS in ICT
| Concept | CHOCH | MSS |
|---|---|---|
| Meaning | Change of Character | Market Structure Shift |
| Strength | Weak/Initial signal | Strong/Confirmed signal |
| Importance | Possible trend change | Confirmed trend reversal |
| When it appears | Early | After CHOCH |
| Entry Type | Aggressive or risky | Safer, confirmed |
4. Visual Example: MSS and CHOCH in ICT
Imagine this pattern on GBP/USD:
- Price is falling: Lower highs and lower lows
- A small high is broken → this is your CHOCH
- Price forms a higher low
- Then breaks a major lower high → this is your MSS
This confirms that bulls are in control and Smart Money may start pushing price up.
5. How to Use CHOCH and MSS in Trading in ICT
- Look for CHOCH first – it warns you a change might be coming
- Wait for MSS – this confirms the change
- Look for entries around Fair Value Gaps (FVGs) or Order Blocks (OBs) after MSS
- Use CHOCH + MSS together with liquidity sweeps and killzones for stronger setups
6. Real-Life Scenario: MSS and CHOCH in ICT
Let’s say you’re watching USD/JPY.
- On the 15-minute chart, price is in a downtrend
- During New York session, it breaks a recent swing high → CHOCH
- A small pullback happens
- Then price breaks above a key lower high from earlier in the day → MSS
Now you have confirmation of a bullish move. You can look for a pullback to an FVG and go long.
7. Final Thoughts
Understanding CHOCH and MSS is critical for mastering ICT and Smart Money trading.
- CHOCH tells you something is changing
- MSS tells you that the change is real
By combining them, you avoid false moves and align your trades with institutional momentum.
Would you like a chart example showing CHOCH and MSS in action?
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