Category: Money tips Release Date: 2007-07-09
Mental ray is a research-based on investor psychology tends to be within a certain period of time investors tend to the buyer or the seller's Psychology and the facts into values, and accordingly a technical indicator of stock trading. As a relatively "unpopular" in technical analysis methods to determine the psychological line in stock prices could play a better results.
Moderator: In a speculative market-based, the parties often become participants in the mental decision to stock prices tend to ebb and flow of key factors. This issue, we invited senior members of Mr. Zhang Hongji securities market sentiment indicator introduced PSY (Psychological line).
â–?Haidian District, Beijing shareholders Miss Wang: Could you tell us about the psychological line of works?
Zhang Q: The main role of the psychological line of research in a certain period of time, investors tend to the buyer the seller's psychological intent, it is actually a kind of emotional indicators. The inventor of the index that gained on the day of trading on behalf of multi-party dominant, otherwise the empty side dominant. The specific calculation method is to stock up for some trading days the proportion of the number of days multiplied by a percent sign, they constitute a PSY indicators.
â–?Beijing Shijingshan District, shareholders Zhao: How to select the PSY trading point?
Zhang Q: Generally speaking, PSY cycle are mostly selected for 12 days. At this time, the psychological line in the indicator values are 25-75 when normal distribution, such as higher than 75, said the stock continued to rise by 9 days, the market psychology overheating, short-term stock price rose too high, down the possibility of great and should be selling rallies out. If less than 25, it means that stock prices had declined for 9 days. Drop is too large, the stock will soon see the low, short-term dips should be bought, waiting for share prices.
Of course, the timing of such sales, is not absolute, concrete operations in which to consider the market situation. If it is a bull market should be a selling point to 85 or more, while the bear market should reduce the selling points, 15 below.
â–?Beijing Shijingshan District, Ho shareholders: PSY in the use of any skills?
Zhang remember: If you simply use the trading methods described above to operate, the accuracy may be relatively low, then you can select those relatively high reliability of the signal.
Generally, when a period of rising Quotes before the start of line from a psychological perspective, the lowest point oversold usually appears twice. At this time, if we find one day of the oversold situation is particularly serious in the short term than the slightest chance of this point, then when the psychological change in line up once again come down to this point, that is, the opportunity to buy and vice versa. Therefore, as long as the reader grasp the timing of these two could be in operation in a more favorable position.
