I. buying and selling signals
1. When the stock price goes up after the middle and low consolidation in the medium and long term, if the PSY curve also starts to break through 50 (line or value, the same below) on the 72nd, it means that the popularity in the market is more active and the bullish power begins to increase, which is a buying signal sent by the PSY indicator. At this point, investors can buy stocks in the short to medium term.
2. When the stock price is consolidating at a high level, once the stock price turns down, the PSY curve begins to fall below 50 on the 72nd, which means that the popularity in the market begins to dissipate and the bullish power begins to weaken, which is the selling signal issued by the PSY indicator. At this point, investors should sell stocks on rallies in time.
Second, the shareholding signal.
1. When the stock price goes out of the middle and low consolidation range and climbs upwards, if the PSY curve rises slowly after breaking through 50 on the 72nd, it means that the market is full of popularity and the bullish advantage is obvious. This is a signal from PSY indicator that the holding of shares is waiting to rise, especially those stocks whose stock prices run upward on the short-term moving average, which is more accurate. At this point, investors should resolutely hold shares to rise.
2. When the stock price is consolidating at a high level and stagflation occurs, if the PSY curve first falls below 50, it will fall all the way on the 72nd, indicating that the popularity in the market is weak and the short-selling force begins to take advantage. This is a wait-and-see signal sent by the PSY indicator, especially for those stocks whose stock prices are suppressed by the moving average. At this point, investors should resolutely hold shares and wait and see.
Third, the trend signal.
1, no trend
The non-trend of the PSY index means that the PSY value oscillates between 40 and 60, indicating that the recent long-short strength is equal and the stock price is basically balanced. Reflected in the graph of PSY, the PSY curve moves slightly up and down or horizontally within the range of 40-60 lines. At this time, investors should take a wait-and-see attitude and make a decision on buying and selling after the trend is formed.
Step 2 be bullish
There are two upward trends in PSY index. One means that the PSY value is above 50 most of the time, even if it occasionally falls below 50, it will quickly rise above 50 and climb upwards. The other is that the PSY value starts below 50, crosses 50 in one fell swoop, and slowly climbs up. It shows that the strength of bulls is stronger than that of bears in recent days, and the stock price has been rising all the way. These two situations are reflected in the PSY curve, that is, the PSY curve moves slowly upward above the 50-line or climbs all the way up from below the 50-line. When the upward trend of PSY is formed, investors should actively buy stocks or hold stocks until the upward trend changes.
Step 3 be bearish
The downward trend of PSY index also has two situations. One is that the PSY value is below 50 most of the time, and the other is that the PSY value begins to fall below the 50 line from above 50 and continues to decline. It shows that the strength of the empty side is too strong, and the stock price has been falling all the way.
Through the above introduction, everyone should know something about some trading signals of PSY indicators. These signals are all obtained from actual combat. If you want to get your own tactics, you'd better summarize them through actual operation.