Psychological Line: Share of Up-Close Days in a Lookback Window

Summary

The document introduces the Psychological Line, abbreviated PSY, as a price-based indicator. Its stated calculation counts the days in a chosen lookback period when the close exceeds the previous close, divides that count by the period length, and expresses the result as a percentage. The indicator therefore summarizes how frequently price has advanced over the window.

The entry names a configurable lookback and two threshold parameters, but does not define the thresholds or explain how they should generate trading signals. It offers no worked example, market interpretation, test results, or discussion of risks such as sensitivity to lookback length. The document is consequently a concise indicator definition rather than an evaluated strategy; practitioners would need additional rules and empirical testing before using it for decisions.

Key ideas

• PSY measures the percentage of days in a lookback window when the close is higher than the prior close.
• The calculation uses closing prices and a configurable period length.
• The entry lists two threshold parameters without explaining their values or signal role.
• No trading rules, backtest evidence, or limitations analysis are supplied.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.