How to use PSY indicators to study and judge market conditions
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Times Source: Top Financial Writer: Stock Market Sniper -Small +Large
The PSY index is composed of two or more curves. When using it to predict the stock market situation, people will generally feel confused. To avoid this situation, investors should choose one or two curves in different periods to study and judge. Let's take the research and judgment of one PSY curve on the 72nd day as an example to tell you about the buying and selling signal, shareholding signal and trend signal functions of PSY indicators. The following is the practical skills of psy indicators compiled by the small editor for your reference.
1、 Buying and selling signal
1. When the stock price goes up with volume after a long period of mid low consolidation, if the PSY curve on the 72nd day also starts to break 50 (line or value, the same below), it means that the popularity of the market is more active, and the strength of bulls begins to increase. This is the buying signal sent by the PSY indicator. At this time, investors can buy stocks in short and medium term.
2. When the stock price consolidates at a high level, once the stock price turns downward and the PSY curve on the 72nd day also starts to fall below 50, it means that the popularity of the market begins to weaken and the bull force begins to weaken, which is the selling signal sent by the PSY indicator. At this time, investors should sell stocks at high prices in time.
2、 Shareholding signal
1. When the stock price breaks away from the mid low consolidation range and climbs upward, if the PSY curve on the 72nd day also rises slowly after breaking 50, it indicates that the market is very popular and the bulls have a clear advantage. This is the signal of shareholding waiting to rise sent by the PSY indicator, especially for those stocks whose stock prices are driven upward by the short-term average, this kind of shareholding signal is more accurate. At this time, investors should firmly hold shares to be raised.
2. When the stock price consolidates at a high level and stagnates, if the PSY curve falls below 50 on the 72nd day and declines all the way, it means that the popularity of the market is weak and short sellers begin to take advantage. This is the holding wait signal sent by the PSY indicator, especially for those stocks whose stock prices are suppressed by the moving average, this holding wait signal is more obvious. At this time, investors should firmly hold shares and wait and see.
3、 Trend signal
1. No trend
The non trend of the PSY index means that the PSY value fluctuates between 40 and 60, indicating that in the near future, the strength of the long and short is equal, and the rise and fall of the stock price are basically balanced. Reflected on the curve graph of PSY, the PSY curve moves up and down slightly or in a horizontal line between lines 40 and 60. At this time, investors should take a wait-and-see attitude, and make buying and selling decisions after the trend is formed.
2. Upward trend
There are two cases of upward trend of PSY indicators. One is that the PSY value is above 50 most of the time, even if it occasionally drops below 50, it will quickly rise to above 50 and climb up; the other is that the PSY value starts from below 50 and rushes up over 50 and slowly climbs up. It shows that the strength of bulls is stronger than that of bears in the near future, and the stock price has risen all the way. These two situations are reflected in the PSY curve graph, which is the upward sloping curve of the PSY curve moving slowly upward above the 50 line or climbing upward from below the 50 line. When the upward trend of PSY is formed, investors should actively buy stocks or hold shares until the upward trend changes. (Top Financial and Stock College: www.58188. com)
3. Downward trend
There are also two cases of downward trend of PSY indicators. One is that the PSY value is below 50 for most of the time, and the other is that the PSY value drops down from above 50 to below the 50 line and continues to fall down. It shows that the short side is too powerful, and the stock price is falling all the way.
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