There are two types of technical analysis in trading 1) Predictive 2) Reactive.

Predictive analysis tries to call for tops and bottoms through some indicators or studies whereas reactive technicals don’t predict tops and bottoms, it just reacts to the current trend. As trading legend Ed Seykota says it “ Don’t predict the non existing future”.

Our strategy of reactive technical analysis is to buy companies with good earnings which are in their long term uptrend and ride them till the uptrend is intact. Our trades last from few weeks to many months depending upon how strong the trend is. We sit through minor corrections of long term trends and we ride profits with all the discipline. At the same time we are very emotionless with our exits because any stock can never be in ever running uptrend so point is to take the meat of trend which we do by our exit rules.