Wave Trend Trading System: Pinpointing the Levels for Best Entries

This strategy is designed to benefit from trend trades by risking small and potentially winning big. The rules are simple and straightforward, and with the trend on your side, the risks of large losses are reduced.

By timing the entries with the unique set of indicators, you can join the next trend swing before other traders who use generic signals for entries.

Indicators needed:

• The Wave indicator - practically a set of three EMAs with a period 34. Each is based on a different calculation as follows: EMA34 (Close), EMA34 (High), EMA34 Low
• CCI indicator - standard settings (Period 20 based on Typical Price)

The three exponential moving averages create the band that we’ll call the “wave”. This Wave acts as an active (moving) support and resistance depending on whether the market is in an uptrend or downtrend.

Strategy Rules:

This is an entry signals generating strategy only. You need to have your targets and exits based on other factors. For example, placing the TP at support/resistance or Fibonacci levels would work well.

Buy Entries:

• The price is above Wave (three EMAs) and has been steadily moving up
• The price enters the Wave
• Look for the price to bounce at the three EMAs (wave indicator)
• The entry signal is confirmed by making sure the CCI was below +100 for the last five candles
• Finally, CCI crosses above +100 and the buy signal is triggered

Sell Entries:

• The price is below Wave (three EMAs) and has been steadily moving down
• The price enters the Wave
• Look for a rejection of the retracement at the three EMAs
• The entry signal is confirmed by making sure the CCI was above -100 for the last five candles
• Finally, CCI crosses below -100 and the sell signal is triggered