I just realized that there is one thing that many traders do not pay enough attention to when analyzing charts – that is the combination of MSS and CHOCH. These two may sound complicated, but they are actually quite simple once you understand them clearly.

Let's start with what MSS is. Basically, it occurs when the market shifts from one phase to another – from an uptrend to a downtrend, from a downtrend to an uptrend, or into a consolidation phase. For example, if the market has just formed higher highs and higher lows but suddenly the price drops below a significant low, that’s a sign of MSS shifting from an uptrend to a downtrend. Conversely, when the price has created lower highs and lower lows and then suddenly breaks above a significant high, that’s MSS shifting to an uptrend.

What’s great about MSS is that it gives you a fairly clear entry point. You just need to identify areas where the price has previously reversed, which will be key levels. When that level is broken, wait for a bit of confirmation before entering. Especially, place your stop loss around these levels to protect yourself if the signal is wrong.

But what is MSS without CHOCH? That’s where CHOCH comes into play. CHOCH is a change in price behavior – you can recognize it through momentum, speed, candlestick patterns, or volume. In a downtrend, if you see buying momentum suddenly spike or green candles appearing more frequently, that’s a bullish CHOCH. In an uptrend, when selling pressure increases or red candles start to dominate, that’s a bearish CHOCH.

The key point is that when you see MSS combined with CHOCH, the reliability increases significantly. For example, MSS indicating a downtrend combined with a bearish CHOCH will greatly increase the chances of a reversal to the downside. Why? Because you have both a structural change and a behavioral change in the price.

In practical application, you should follow this process: first, identify the current market structure and phase. Then look for MSS – watch out for breakouts at key levels. Next, confirm with CHOCH – see if there’s a change in candlestick patterns, volume, or indicators. When both appear, you can enter a trade in the direction of the new trend. Finally, manage the trade with stop loss and take profit.

I often use MSS as a main tool combined with support/resistance, candlestick patterns, and oscillators like RSI or MACD. Timeframes are also important – CHOCH works best on 4H or daily charts, but it can also be useful for scalping on lower timeframes.

This is especially useful for crypto because the crypto market often has large swings and clear reversals. If you master how to combine MSS and CHOCH, you will have a significant advantage in spotting higher-probability trading setups. Try applying this on your charts and see how it goes.