Oscillator Psychological Index

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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. Like most overbought/oversold indicators, it will give poor results in a strongly trending market, but perhaps using an ADX and trend direction filter, it might prove useful.
On 5-minute bars in the bonds, you have to constantly adjust the thresholds for an upward or downward bias, but if you increase the lookback period and widen the signal levels for less frequent signals, the results were interesting.
Regards.
System Tester code:
Enter Long / Close Short
LookBack:= opt1;
UThreshold:= opt2;
LThreshold:= opt3;
UpDay:= If(CLOSE > Ref(CLOSE,-1), 1, 0);
PsychIndex:= Sum(UpDay,LookBack) / LookBack * 100;
PsychIndex <= LThreshold
Enter Short / Close Long
LookBack:= opt1;
UThreshold:= opt2;
LThreshold:= opt3;
UpDay:= If(CLOSE > Ref(CLOSE,-1), 1, 0);
PsychIndex:= Sum(UpDay,LookBack) / LookBack * 100;
PsychIndex >= UThreshold

[19420]

Re: Psychological Index
· To: metastock@xxxxxxxxxxxxx
· Subject: Re: Psychological Index
· From: HHP <hhp@xxxxxxxx>
· Date: Mon, 07 Aug 2000 10:40:54 -0700
· References: <009101bfffae$bef0aea0$5a124118@xxxxxxxxxxxxxxxxxxxxxx>
· Reply-To: metastock@xxxxxxxxxxxxx
· Sender: owner-metastock@xxxxxxxxxxxxx
Your UThreshold and LThreshold are the first time I've seen the Input() function used for this purpose. Good thinking. I'll steal that idea.
HHP
[19376]​

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