In the Technical and Chart Analysis, the most important step, which is sometime referred as your best friend, is spotting a TREND.

So once you find and confirm an up or down trend, things become easier for you. I am going to tell you a very simple and basic point, which is very vital and important in spotting the next trend you may wanna spot in a chart.

![trends.jpg](https://cdn.steemitimages.com/DQmdcMcaKAzvPoXPTuXbAZMA7Z4dY2H8afeYUhAhN95vDgQ/trends.jpg)
[img src](https://forexmt4ea.com/wp-content/uploads/2014/08/trends.jpg)

A trend is confirmed since no correction bigger than 38% of the previous move is seen. Whether a down or up trend, if a next move in the opposite direction measures bigger than 38% of the previous wave, you should doubt a trend has formed in that direction.

![1241853501-1906c7589844120b027e24bc02d3e17e9540bf7bb664fe067640240de468c8c4.png](https://cdn.steemitimages.com/DQmNPEEoVTe7MyLW5zdRh73m3HRqNHR39XX44LGV86SW9x9/1241853501-1906c7589844120b027e24bc02d3e17e9540bf7bb664fe067640240de468c8c4.png)

this is a sample, for an uptrend. as you see, corrections are smaller than 38%

![1241853501-6692a1e2c00426058510f73cf876f1a28198507abc0924747d0dda232d62ec11.png](https://cdn.steemitimages.com/DQmbMt3iQkSPfz7UEJwhH1cymAP5BToS46poXopDtUSiani/1241853501-6692a1e2c00426058510f73cf876f1a28198507abc0924747d0dda232d62ec11.png)

and this is a sample, which shows a strong wave, follows by a strong opposite direction wave, which questions the previous rise was beginning of an uptrend.

I hope this small issue helps you better in future analyzing the charts :)

I also have posted this on [my Publish account](https://www.publish0x.com/honarparvar/warning-might-not-be-trend-xyeyvr).