Index refers to the unit or method to measure the target. Stock index belongs to the category of statistics. According to certain mathematical statistics methods and some complicated calculation formulas, all analytical methods to demonstrate stock trends and transactions are based on data. There are momentum index, relative intensity index, randomness and so on. Because the above analysis often needs the support of certain computer software, it is only a general understanding for investors who buy and sell personal real transactions. However, it is worth mentioning that technical index analysis is a very important exchange rate analysis and forecasting tool for professional foreign exchange traders in the international foreign exchange market. The emerging electronic spot market also has the use of similar indicators, which are introduced in the electronic spot house.

Psychological line mainly studies the psychological tendency of investors, and converts the psychological fact that investors tend to be buyers or sellers in a certain period into numerical values, forming popularity indicators, thus judging the future trend of stock prices. Application rules: 1. Before the rising market begins, the oversold low usually appears twice. Similarly, before the decline begins, the highest point of overbought will appear twice. 2. The range of psychological line index is between 25 and 75, which belongs to normal distribution. 3. Over 75 or below 25, there will be overbought or oversold. At the beginning of the big short market, the overbought selling point can be adjusted to be higher than 83 and lower than 17 until the market ends, and then adjusted back to 75,25. 4. When it is lower than 10, it is oversold and the probability of rebound is relatively high. This is the time to buy. 5. Two high-point intensive appearances are selling signals, and two low-point intensive appearances are buying signals. 6. When the psychological line and the volume ratio (VR) are used together to determine the short-term trading point, the high and low points of each wave can be found.