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 is calculated using the following formula:

PSY = COUNT(Close > Close[-1], timeperiod1) / timeperiod1 * 100

Where Close[-1] is the previous closing price.

Usage Scenarios

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

Usage Recommendations

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