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Trending Waves is a trading system based on trend averages in combination with wave theory and traditional technical analysis. The key component of this system is the trend average, which is a calculation based on the average for the median of the daily high and lows for a specific period of time. The market is then compared to this trend average to calculate it’s current position. Once the market’s position is determined, a numeric value is assigned and combined in an algorithm where wave structure and traditional technical analysis values are applied to give the market an overall trading score.  By doing this calculations, the score gives us a probability of where the market is headed next and in turn allow for the right market posturing.

This system can be used by both long term investors and shorter term traders. Long term investors can adjust portfolios when there are imminent changes in long term trends and in turn avoid bear markets. Shorter term  traders can use the system to make sure they are trading on the “right” side of the trend and able to identify higher probability trade entries. Because of the mathematical nature of the system, there is no bias involved therefore allowing investors to gain an advantage over a sentiment driven market.