Trading CHoCH Reversals with Swing High and Low Breaks

Summary

This article describes a price action Expert Advisor that identifies swing highs and lows, labels successive swings as higher highs, lower highs, higher lows, or lower lows, and uses those sequences to infer trend direction. A bullish Change of Character signal occurs when price closes above a recent swing high during a downtrend; a bearish signal occurs when it closes below a recent swing low during an uptrend. The proposed MQL5 system includes per bar or per tick detection, configurable trade sizing and limits, stop loss and take profit settings, optional trailing stops, and chart annotations.

The article explains the intended logic and implementation features, but the backtest section contains no report values or readable performance evidence. It therefore does not establish whether the reversal rules work across instruments, timeframes, or market regimes. The swing definitions, scan length, and trade management settings are configurable choices that can materially affect results. Treat the system as an example to evaluate with careful, out of sample testing and realistic transaction costs before considering live use.

Key ideas

• Swing points are classified by comparing each new high or low with the previous corresponding swing.
• A bullish CHoCH is defined as a close above a recent swing high during a downtrend.
• A bearish CHoCH is defined as a close below a recent swing low during an uptrend.
• The EA supports bar close or tick based signals, trade limits, fixed trade levels, and optional trailing stops.
• The article provides no numerical backtest results to establish the strategy’s performance.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.