(new update 12/08/2025)
CHOCH AND BOS MODEL
This model serves to identify ruptures in the market structure, both continuations and changes. Its main purpose is to serve as a reference for detecting areas of POIS (Point of Interest).
CHOCH (CHANGE OF CHARACTER)
When we use this concept, we refer to the process of change in the structure of the market. Important: The only way to confirm a change in trend is that, after a SHOCK.
BOS (BREAK OF STRUCTURE)
It involves a continuation of the structure, that is, the current continuous trend.
For example, if we come from a bullish structure, the price will continue to make higher highs (Higher Highs); if we come from a bearish one, it will continue to make lower lows (Lower Lows).
POIs
The term POIS It comes from Point of Interest (point of interest), that is, relevant areas of the market. Structural ruptures or their continuations help us identify where the optimal point of entry is located. Let's remember that the algorithm moves the price from one extreme to the other.
These areas of POIS are generated as a result of structural market ruptures. Once the structure is broken, these key areas are marked.
When we talk about Reaction Blocks, we refer to Orderblocks, which can be:
LIQUIDITY GAPS
Los FVG are generated when there is a gap between supply and demand. The indicator automatically detects them and marks them as rectangles when this type of imbalance occurs.
?HOW TO USE THE INDICATOR?
To apply it correctly, it is important to contrast it with a previous analysis, thus increasing the probability of success.
This indicator works in any season, but in LTF (low timeframes) has a higher effectiveness rate.
What makes this indicator different is that it offers you a complete institutional strategy: