CHoCH + FVG = Institutional Entry Point for Option Traders!

Hello Traders!
Today, we’re diving into one of the most powerful Smart Money Concepts — combining CHoCH (Change of Character) with FVG (Fair Value Gap) to identify high-probability institutional entry zones. This setup works brilliantly for both equity and option traders, especially when you want to catch the move before the breakout.

What is CHoCH (Change of Character)?
CHoCH occurs when the market shifts from a bearish to bullish structure or vice versa. It marks the first sign that market structure is shifting, and smart money is potentially stepping in.

What is a Fair Value Gap (FVG)?
An FVG is an imbalance between buyers and sellers. When price moves sharply in one direction, it leaves behind an area (usually 1-2 candles) with no trading activity — that’s the gap smart money fills later to enter or add positions.

Why This Combo Works Like Magic

• CHoCH gives confirmation that market direction is changing.
  
  
• FVG gives the entry zone where big players are likely to buy or sell again.
  
  
• High Risk-Reward: You’re entering close to where institutions enter — not chasing breakouts.
  
  
• Ideal for Option Traders looking for momentum entries at discounted zones.
  

How to Trade This Setup

• Wait for a CHoCH on the 5min/15min chart.
  
  
• Mark the FVG zone created after CHoCH.
  
  
• Enter near the FVG zone with confirmation (rejection candle, volume spike, or VWAP bounce).
  
  
• Place stop loss below the FVG and target swing high or based on option premium chart.
  

Rahul’s Tip
Don’t just chase the breakout. Learn to identify where smart money accumulates before the rally. CHoCH + FVG = sniper-level precision for option scalpers.

Conclusion
This setup is becoming a go-to for institutional-style intraday traders. It’s clean, logical, and extremely efficient when executed with discipline. Start spotting these patterns and backtest your entries — you’ll be amazed by the results!

Have you tried CHoCH + FVG before? Let me know your experience in the comments!