PSY (Psychological Line)

Indicator Description

PSY (Psychological Line) is a sentiment indicator that reflects the market's psychological state and trend changes by calculating the proportion of days with price increases.

Function Information

• Function Name: PSY
• Input Parameters: Open
• Parameter Settings: timeperiod1 (default: 13), timeperiod2 (default: 8)
• Output: None

Calculation Principle

PSY reflects the market's psychological state by calculating the proportion of days with price increases. When the PSY value is greater than 75, it indicates the market is overly optimistic; when the PSY value is less than 25, it indicates the market is overly pessimistic.

Application Scenarios

1. Market sentiment analysis
2. Overbought and oversold judgment
3. Trend reversal identification
4. Trading signal generation

Usage Suggestions

1. PSY rising from the oversold area can be seen as a buy signal
2. PSY falling from the overbought area can be seen as a sell signal
3. Use in combination with price trends
4. Pay attention to changes in market sentiment