Smart Money Concept Change of Character Break of Structure

SMC Structure [CHoCH & BoS]

Visualizes Change of Character (CHoCH) and Break of Structure (BoS) - two fundamental Smart Money Concepts for identifying trend reversals and continuations.

This is the 1st version of an implementation of this concept.
It is NOT supposed to be used as a signal but a confirmation. Best use during NYSE hours.

Full Description
Overview
This indicator automatically detects and displays two core Smart Money Concepts (SMC) directly on your chart:

CHoCH (Change of Character) – The first structural break against the prevailing trend, signaling a potential reversal
BoS (Break of Structure) – A structural break in the direction of the current trend, confirming continuation

These concepts are essential building blocks of SMC trading methodology, helping traders identify where institutional players may be entering or exiting positions.

How It Works
The indicator uses pivot-based swing detection to identify significant highs and lows. When price breaks through these levels, it classifies the move as either a CHoCH or BoS based on the current trend context.
CHoCH (Change of Character)

Occurs when price breaks structure AGAINST the current trend
First warning sign that the trend may be reversing
Displayed as a solid horizontal line with "CHoCH" label
Green = Bullish reversal | Red = Bearish reversal

BoS (Break of Structure)

Occurs when price breaks structure IN THE DIRECTION of the current trend
Confirms that the existing trend remains intact
Displayed as a dashed horizontal line with "BoS" label
Teal = Bullish continuation | Maroon = Bearish continuation


Visual Example
Uptrend with BoS (continuation):

HH ◄── BoS (trend continues)
/
HL
/
HH
/
HL


Uptrend → CHoCH → Downtrend (reversal):

HH
/ \
HL \
LL ◄── CHoCH (trend reversal!)

Settings
Pivot Settings

Pivot Lookback: Number of bars used to identify swing highs/lows (default: 5). Higher values = fewer but more significant structure points.

Display Options

Show CHoCH: Toggle CHoCH visualization
Show BoS: Toggle BoS visualization
Show Swing Points: Display SH/SL labels at detected pivots
Extend Lines to Right: Extend structure lines into future bars
Show Info Table: Display current trend and last swing levels
Show Trend Background: Color the chart background based on trend direction

Colors

Fully customizable colors for all elements


How to Use

Identify the trend: Look at the sequence of CHoCH and BoS signals to understand market structure
Watch for CHoCH: A CHoCH signals potential reversal – wait for confirmation before trading against the previous trend
Trade with BoS: BoS confirms trend continuation – look for entries on pullbacks in the direction of the trend
Combine with other SMC concepts: Works great alongside Order Blocks, Fair Value Gaps, and liquidity concepts


Tips

Use higher pivot lookback values on higher timeframes for cleaner signals
A CHoCH doesn't guarantee reversal – it's the first warning sign, not confirmation
Multiple BoS signals in a row indicate a strong, healthy trend
Look for CHoCH occurring at key levels (support/resistance, order blocks) for higher probability setups


Feedback Welcome!
This is an open-source indicator and I'd love to hear your thoughts!
Please comment below if you have:

Feature requests or ideas for improvements
Bug reports or issues
Suggestions for additional SMC concepts to add

Your feedback helps make this indicator better for everyone. Happy trading! 🚀