Psychological Line — Indicator dictionary

An indicator that reads the market mood, upbeat or gloomy, from the percentage of recent candles that closed higher.

Weapon tier: Standard
Slots used: Sub-charts 1/2

Concept

Psychological Line is the share of the last 12 candles whose close was higher than the candle before. If all of them rose it is 100; if none rose it is 0. It does not look at how much the price rose, only at how many candles rose.

The panel shows a single line with dotted lines at 25 and 75. Above 75 is often read as “overheated” and below 25 as “gloomy”. Because it counts candles, the line moves in steps.

Psychological Line

Charts by TradingView Lightweight Charts™

During the shaded stretch the line was below 25 and the price kept falling. This chart was chosen as a scene where the price rose after the line came back above 25; falling again afterwards is common too. Drag the chart sideways with a finger or the mouse to move it, and pinch with two fingers to zoom in. With a keyboard, click the chart, then use ←/→ to move and +/− to zoom.

How it is calculated

For each candle, count it as a “rising candle” if its close is higher than the previous close (an equal close does not count).

Psychological Line = number of rising candles among the last 12 ÷ 12 × 100.

Parameters

What it sets	Name in the game	Default	Range
Candles over which to count rising candles	period	12	2 – 60

Trading ideas

Leaving the gloomy zone: when the line has been below 25 and then climbs back above it, it is commonly read as a sign that a falling-only mood is starting to change. The chart on this page shows that scene.

Overheating: when the line stays above 75 for a long time, rising days are seen as having gone on too long, and traders become cautious.

Common traps

It ignores the size of moves, so the line can stay high even when the price rises a little each day and then drops sharply in one day.
With a short period the value changes a lot from day to day. The line jumping in steps is normal.
The chart on this page was chosen as a scene where the price rose after the signal. Read it together with the trend (lesson 2) and volume.

In the game

“Psychological Line” is a “Standard” weapon and uses 1 of the “Sub-charts” panels (limit 2). Volume in the starting setup already uses 1, so adding Psychological Line brings it to 2 (0 left).
The panel shows a single line and dotted lines at 25 and 75.

Related indicators and lessons

RSI — An indicator that compares recent up moves with recent down moves and shows, as a number from 0 to 100, which side has been stronger lately.
Stochastic — An indicator that shows, on a scale of 0 to 100, where today’s close sits between the lowest and the highest price of the last few candles.
SONAR — An indicator that draws how much an exponential moving average has risen (or fallen) compared with a few candles ago, to read the “slope” of the trend.
TRIX — An indicator that shows by what percent, per candle, a very smooth line — an exponential moving average stacked three times — rises or falls.
CCI — An indicator that shows how many times its usual swing the price has moved away from its recent average.
ROC — An indicator that connects into a line how many percent the close has risen or fallen compared with the close a few candles ago.
Disparity Index — An indicator that shows, around a baseline of 100, how many percent the close is away from its moving average.
Williams %R — An indicator that shows, as a number from −100 to 0, how far today’s close sits below the highest price of recent candles.
AB Ratio — An indicator that compares how far each candle rose above and fell below its open, showing which side was stronger during the session.
Ultimate Oscillator — An indicator that blends buying pressure over a short, a medium and a long period into a number from 0 to 100.
1. Reading a single candle
2. Trends and sideways moves