The first pullback after a CHoCH is where people get trapped

[Shadow Trader]

You see a clean change of character on the lower timeframe, price breaks the last higher low, and you immediately look for a short on the first pullback. That is the most popular setup in this style, and also one of the most crowded. The issue is that the first pullback often retraces into the area where the old trend's orders still sit, and many times price takes it out and continues the previous trend. I have noticed the better entries usually come from the second reaction or from a pullback that is shallow and rejects a clear zone. A rule I follow: if the pullback after CHoCH retraces beyond the 50 percent of the impulse leg, I stop treating it as a clean reversal and demote the setup. Also check whether the CHoCH took out meaningful liquidity first. A CHoCH from nowhere is weaker than a CHoCH after a sweep of a previous day high. The signal is not the break itself. It is the story that surrounds it.