Psychological Line (Titan_psychological_line)
Indicator Overview
What is a Psychological Line?
The Psychological Line is a simple indicator that displays the percentage of rising bars in a specified recent period on a sub-chart. If it reads 100%, it indicates that all bars within the period were bullish, while 0% indicates all were bearish. This indicator uses the ratio of rising bars to analyze market sentiment.
【Example of Psychological Line Display】
Key Points of the Psychological Line
Generally, when the Psychological Line exceeds 75%, it suggests that buying has become overheated, and below 25%, it suggests that selling has become overheated. It is primarily used to determine timings for taking profits or for counter-trend trades.
The following image shows how the Psychological Line has effectively indicated short-term market reversals around the 75% and 25% levels.
【Analysis Example Using Psychological Line #1】
Beware of Overconfidence, Especially in Strong Trends
Like all oscillator-type indicators, in strong trends, the market may continue rising or falling even after crossing the 75% or 25% thresholds.
When aiming for reversal trades, remember that a strong trend could still be developing.
The next chart shows an example where the price continued to rise even after exceeding 75%.
【Analysis Example Using Psychological Line #2】
※ This indicator is only compatible with TitanFX's Windows version of MT5 and MT4.
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Indicator Settings
Input (For MT5), Parameter Input (For MT4)
| Variable Name | Description | Default |
|---|---|---|
| Period | Specifies the period for calculating the Psychological Line. | 12 |
Color Settings (For MT5), Color Configuration (For MT4)
| MT5 | MT4 | Description |
|---|---|---|
| 0 | 0 | Color, thickness, and style of the line |