34 Psychological Line (psl)

PSL is an oscillator-type indicator that compares the number of the rising periods to the total number of periods. In other words, it is the percentage of bars that close above the previous bar over a given period.

It reflects the buying power in relation to the selling power. If PSL is above 50%, it indicates that buyers are in control. If the PSY moves along the 50% area, it indicates balance between the buyers and sellers and therefore there is no direction movement for the market.

Figure 8.50: Psychological Line