A trend that continues.

It is the nature of trend to make significant thrusts (in the direction of the trend), then pause, consolidate, even correct, and finally resume the advance by another thrust.

When the trend pauses, a natural question arises: is this a correction or a reversal? As traders, we must always believe that the trend is our friend (this sounds like a filmi dialog, but it is true). We must always assume that the trend will continue unless proved otherwise.

If the trend resumes with a breakout from the existing consolidation, new highs should be within sight. Finally, there will come a breakout, which will fail to reach its targets, cause volatility to increase and eventually make lower highs, lower lows, on lower time frames. This will be the first sign that a real correction is starting.