Part One: How to tell whether people are inclined to buy a share?
Hi, mooers!
The 5th TA challenge is live!![]()
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If you stick with us from the first TA challenge, you have definitely learned a lot about using different technical analysis indicators. TA challenge is a healthy recipe for taking in technical analysis knowledge. We will make the content easy to understand and teach you how to use combinations of them, so you can become a better technical analysis trader! Hope you enjoy the healthy food for the mind and earn more from the market!![]()
The 5th TA challenge is live!
In this new session, we're going to learn how to use people's emotions to time entry and exit points. Sounds fantastic, right? Scroll down, and let's explore the new indicator!![]()
What's PSY?
The Psychological Line (PSY) is an indicator based on the presumption that people will resist paying more for a share than others unless the stock continues to move up. Conversely, people resist selling a stock for less than others have been getting for it, except if the price continues to decline. Finally, people who purchase the stock at the top of a trading range tend to wait until the price comes back before they get out.
The Psychological Line (PSY) is an indicator based on the presumption that people will resist paying more for a share than others unless the stock continues to move up. Conversely, people resist selling a stock for less than others have been getting for it, except if the price continues to decline. Finally, people who purchase the stock at the top of a trading range tend to wait until the price comes back before they get out.
How does PSY work?
When PSY crosses line 70, the security is considered overbought. When its value is below 30, the security is considered oversold.
When PSY crosses line 70, the security is considered overbought. When its value is below 30, the security is considered oversold.
PSY case study
In February 2022, the stock's PSY crossed line 70, indicating that the stock price had been up for days and reached the overbought area. After that, a downward trend came, and the price fell. In March 2022, the stock's PSY crossed line 30. Its price went up for over 7 days until the PSY crossed line 70 and fell again.
Post your learning results by taping the discussion: TA Challenge: Emotional trading is bad? PSY doesn't think so!
Which of the following statement is correct?
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PSY 70/30 indicates overbought/oversold
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PSY 70/30 indicates oversold/overbought
Disclaimer: This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. It is provided without respect to individual investors’ financial sophistication, financial situation, investment objectives, investing time horizon, or risk tolerance. You should consider the appropriateness of this information having regard to your relevant personal circumstances before making any investment decisions. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal.
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Life not simple : PSY 70 indicate overbought
PSY 30 indicate oversold
modest Reindeer_3679 : 70 over bought 30 over sold
GreenWorld : 70 overbought, 30 oversold
Milk The Cow : PSY 70/30 indicates overbought/oversold
MrZorro007 : PSY 70 indicate overbought
PSY 30 indicate oversold
Imranm20 :
PSY 70/30 indicates overbought/oversold
Ayira : psy 70/30 over bought/over sold
ttttt123 : I can’t find the indicator
cola1010 : PSY 70 indicate overbought, PSY 30 indicate oversold
Christopher Cioc : 70 - Overbought and 30 - Oversold
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