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Trends & Market Structure

What Is a Change of Character

A change of character is the moment a chart's run of higher highs and higher lows gives way to a lower high and a lower low, or the other way round. This paper shows you one drawn from the euro's turning points in July 2025, the idea as a weathervane swinging, the change on the daily chart with its two boxed turns, the same months written as a run of letters that changed and then changed back, and the OHLC line on your platform for reading a turn's exact numbers.

Difficulty
Beginner
Reading time
5 min
Pages
8
Reviewed by
Saman Rahbar

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A lower high, then a lower low

A change of character is the moment a chart's run of higher turns ends. From May 2025 the euro against the dollar made higher highs and higher lows: highs of 1.16313 and then 1.18295 on 1 July, and lows of 1.14459 and then 1.15565 on 17 July. Then the run changed. The 24 July high of 1.17888 was lower than the last high, and on 1 August the price went to 1.13916, under the last higher low. A lower high followed by a lower low, after a run of higher ones: that is the change of character.

A weathervane

The picture is a weathervane. For weeks the wind came from the east and the arrow pointed that way; now it has swung and points west. The vane does not forecast the wind; it shows which way the wind is blowing at this moment. A change of character is the arrow swinging. The last two turns of the chart point the other way from the run before them, and the chart's character — rising or falling — has changed as of those turns.

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