Prime Number Bands Indicator Settings, Formula, Meaning

Prime Number Indicator

Determining market trends has become a science even though a high number of people still believe it’s a gambling game. Mathematicians, technicians, brokers, as well as investors, have worked together in developing quite a several indicators to help them better understand and forecast market movements. The Prime Number Bands indicator was developed by Modulus Financial Engineering Inc. This band shows the nearest prime numbers, both highs and lows and plots the difference between them as bands, on a chart.

Description of Prime Number Bands Indicator:

Similar to the Darvas’ Box, the prime number bands indicator shows the space range where a market price moves into. This indicator uses prime numbers and identifies the closest high and low prime numbers. It also plots the difference between the value at this moment.

In the Zerodha Kite platform, traders can find the indicator under the STUDIES section. This indicator is also available in the Kite mobile App. The Channel Fill is selected and we also can deselect it. Traders can also select the colours of top band, bottom band and the channel fill. Please check the image below to understand how we attached the Prime Number Oscillator indicator in Reliance share price chart. You can attach the Prime Number Oscillator indicator on to any time frame charts likes daily, weekly, monthly or intraday.

Prime Number Bands

This Prime Number Bands indicator is different from the prime number oscillator indicator. In this, the first one indicates a broader area where the values move. If a constant upward movement is determined on the chart, the signal of Prime number bands indicator indicates a bullish market is present and the market is safe, flourishing, contrarily. If this indicator moves constantly downwards, a bearish market is following and the market becomes unstable and volatile.

Prime Number Indicator

Conclusion :

The indicator has always been somewhat of a mystery in the mathematics world. Chartists have tried to use their awkward disposal in the design of financial indicators. This indicator is taking advantage of their magical purpose to better predict market movements, trends and consequently, to successfully plan their next moves. As we have discussed in this article, there are many mathematical tools, that have become financial indicators over the time. Mathematical tools have also helped in the development of technical indicators. In the end of this, stock market speculation is clearly a science, and a very exact one at that. In all the indicators have been developed through mathematics, statistics, geometry and sometimes physics.

Prime Number Bands Indicator Settings, Formula, Meaning

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