"TrendSpotter is a computerized trend analysis system, developed by Barchart.com. The system uses a combination of wave theory, market momentum and volatility in an attempt to find a general trend for a specific market. TrendSpotter attempts to cut losers early and let winners run."
Im gonna speculate and say that Wave Theory simply means it uses higher highs and lower lows (shorter periods than your typical SAR would explain the tighter feel). Momentum is probably a simple ROC (positive = bullish , negative = bearish) and then volatility is used to set the distance between the dots (ATR style stop loss)
