In which technical indicator can I find the waterfall line?

Background

Waterfall line is a major analytical method widely used in Europe and the United States in the early nineties in the financial field to determine the trend of the stock price, so by the convergence of the downward dispersion of the waterfall-shaped and so named. "Waterfall line" belongs to the traditional pure price trend line, its real name is called non-linear weighted moving average, is a combination of six non-linear weighted moving averages, each of which represents a different time period of the cost of the stock, to facilitate comparative analysis. "Waterfall line" is a medium-line indicator, generally used to study the medium-term trend of stock prices, compared with the ordinary averages system, it has a fast reaction speed, gives the characteristics of the buy and sell points clearly, and can filter out the main force in the disk shaking wash or down market in the small rally, can be intuitively and effectively grasp the trend of the stock market and the movement of the individual stocks, is the most important factor in determining the general trend and the individual stocks. Currently, the average system is quite effective in determining the trend of the general trend and the running trend of individual stock prices.

"Waterfall line" will not easily give buy or sell signals, if the "waterfall line" gives buy or sell signals, as long as the application of its principles to do, will certainly achieve better investment returns.

How to use the waterfall line

1, the waterfall line of the trend operation

Buy: waterfall line in the low-price area by the convergence of adhesion began to diverge upward, is a clear signal to buy, and if there is a volume of cooperation, then the accuracy is higher, which tells the investment has the stock price will be a period of time and a certain magnitude of the upward movement of the upward movement of the stock price.

Sell point: waterfall line in the high price area by the convergence of adhesion began to diverge downward, is a clear sell signal, the establishment of the signal does not need to cooperate with the volume, at this time investors not only can not buy the stock, but also resolutely sell the stock.

The waterfall line issued by the buy point than the sell point is more accurate and reliable, but also listed with practical value.

2, waterfall line countertrend operation

When the waterfall line is extremely dispersed, according to the individual stocks have stock, different subjects, combined with the trend channel, deviation rate indicators to do the corresponding rolling operation.

3, waterfall line analysis cycle selection

Doing long-term general use of the weekly waterfall line to analyze, do the medium-term swing market, usually to the daily K line corresponding to the waterfall line system, while the time waterfall line system is a good tool for short-term in and out of the waterfall line.

4, the use of waterfall line sixteen Ann decision

Waterfall line consider buying, waterfall line resolutely sell.

5, the scope of application:

Waterfall line applies to two trend market, in the trend of clear upward or downward trend, can give a clear buy and sell points and position signals, is to grasp the swing market tool, but it does not apply to the balance of the city's operations.

6, features

Can visualize the trend of the market and individual stocks

7, waterfall line has up and down