1. Before the falling (rising) market starts, the highest point (lowest point) of overbought (oversold) usually appears twice. When the highest point (lowest point) of the second overbought (oversold) appears, it is usually the time to sell (buy). Because the PSY index has the characteristics of this high point, it can give investors sufficient time to judge and intervene.

2. The 2.PSY index is normally distributed between 25 and 75. PSY index mainly reflects the overbought and oversold of market psychology, so when the psychological line index moves up and down in the normal area, it should generally take a wait-and-see attitude.

3. when 3. If the PSY index exceeds 75 or is lower than 25, it means that the stock price has started to enter the overbought area or oversold area, so we need to pay attention to its trend at this time. When the percentage value of PSY index exceeds 83 or is lower than 17, it indicates that there is an overbought area or an oversold area in the market, and the chances of price falling or rising increase. Whether the second signal appears or not, investors should be ready to sell or buy. This situation is more common in individual stocks.

4. When the percentage value of PSY index: 90 is extremely overbought. This is a favorable opportunity for short-term selling.

5. When the PSY curve and PSYMA curve run upward at the same time, it is the buying opportunity; On the contrary, when the PSY curve and the Pusima curve run down at the same time, it is the selling opportunity. When the PSY curve breaks through the PSYMA curve upwards, it is the buying opportunity; On the contrary, when the PSY curve falls below the PSYMA curve, it is the selling opportunity.

6. When the PSY curve breaks through the PSYMA curve upwards, it begins to pull back the PSYMA curve downwards. As long as the PSY curve fails to fall below the PSYMA curve, it indicates that the stock price belongs to a strong consolidation. Once the PSY curve goes up again, it is a buying opportunity; When the PSY curve and PSYMA curve run upward for a period of time at the same time, and the PSY curve is far away from the PSYMA curve, once the PSY curve turns down, it shows that the kinetic energy consumption of the stock price rise is large, which is a selling opportunity.

7. When the PSY curve and PSYMA curve extend upward again at the same time, investors should increase their holdings of stocks; When the PSY curve runs below the Pusima curve, investors should wait and see with money.

8. When the PSY curve and PSYMA curve are always intertwined and move in a space with little fluctuation, it shows that the stock price is in a consolidation pattern, and investors should mainly wait and see.