Psychological Index

Modified on 2010/09/13 15:18 by Eugene — Categorized as: Community Indicators

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 );
					}
				}	
			}
		}
	}
}