Psy, the psychological line indicator in the securities market, is a unique technical indicator based on the study of investors' psychological state, and is often used to assist other indicators in making judgments in actual combat. Although there are relatively few investors who can master and use psy index skillfully, its value is beyond doubt.

What are the practical uses of Psy indicators?

1 overbought (overbought) usually occurs twice in a period of falling (rising) market. The highest point (lowest point) in the second overbought or oversold is the best time to sell (buy). Because in this case, the signals of psy indicators will appear very densely, which can bring investors sufficient judgment and intervention time.

The normal distribution of psychological line index is between 25 and 75. Since the psy indicator is mainly used to reflect the overbought and oversold of the market, investors should take a wait-and-see attitude when exercising within the normal range.

When the psychological line index is greater than 75, it is a signal to step into the overbought area, and when it is less than 25, it is a signal to step into the overbought area. When the psy index is greater than 83 or less than 17, it indicates that there is an overbought or overbought area in the market, and investors should be prepared to sell or buy.

When the psy index is greater than 90 or less than 10, it is a signal of extreme overbought or oversold. When it is greater than 90, it is a favorable opportunity for short-term selling, and when it is less than 10, it is a favorable opportunity for short-term buying.

Psychological line index psy is a short-term index, which fluctuates greatly, and investors who have just come into contact with salary index often can't adapt. Moreover, the psy index does not consider the factors of quantity and energy, and investors need to make up for the defects through other technical indicators in practical application.