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Psychological Index

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Psychological Index: Indicator Documentation

Syntax

DataSeries PsychIndex(Bars bars, int period)

Parameter Description

bars A Bars object
period Lookback period

Description

The Psychological Index is an overbought/oversold indicator described in the June 2000 Futures Magazine. The article described the standard lookback period as 12 bars with a level of 75% or higher being an indication of an overbought market and 25% or lower being an oversold market.

Example

A system in this example is always in the market. It goes long and short by the Psychological Index's readings:


using System;
using System.Collections.Generic;
using System.Text;
using System.Drawing;
using WealthLab;
using WealthLab.Indicators;
using Community.Indicators;

namespace WealthLab.Strategies { // Psychological Index public class PsychIndex : WealthScript { private StrategyParameter paramLookback; private StrategyParameter paramUpper; private StrategyParameter paramLower; public PsychIndex() { paramLookback = CreateParameter( "Lookback", 12, 3, 30, 1 ); paramUpper = CreateParameter( "Upper", 75, 0, 100, 1 ); paramLower = CreateParameter( "Lower", 25, 0, 100, 1 ); } protected override void Execute() { int Lookback = paramLookback.ValueInt; int Upper = paramUpper.ValueInt; int Lower = paramLower.ValueInt; PsychologicalIndex pi = PsychologicalIndex.Series( Bars, Lookback ); pi.Description = "Psychological Index";

ChartPane PsychIndexPane = CreatePane( 25, true, true ); PlotSeries( PsychIndexPane, pi, Color.Green, LineStyle.Solid, 2 ); DrawHorzLine( PsychIndexPane, Upper, Color.Blue, LineStyle.Solid, 2 ); DrawHorzLine( PsychIndexPane, Lower, Color.Red, LineStyle.Solid, 2 ); for(int bar = Lookback; bar < Bars.Count; bar++) { if ( Positions.Count == 0 ) { if ( pi[bar] <= Lower ) BuyAtMarket( bar+1 ); else if( pi[bar] >= Upper ) ShortAtMarket( bar+1 ); } else { Position p = LastPosition; if( p.PositionType == PositionType.Long ) { if( pi[bar] >= Upper ) { SellAtMarket( bar+1, p ); ShortAtMarket( bar+1 ); } } else if ( pi[bar] <= Lower ) { CoverAtMarket( bar+1, p ); BuyAtMarket( bar+1 ); } } } } } }

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Used under license from FMR Corp. Copyright 2008 FMR Corp. All rights reserved.


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