The prime number oscillator indicator indicates the nearest prime number, be it at the top or the bottom of the series, and outlines the difference between that prime number and the respective series. Like its band version, Modulus Financial Engineering Inc developed the oscillator.
Determining market trends has become a science even though a high number of people still believe it’s a gambling game. In order to understand and predict market movements, technicians and mathematicians along with brokers and investors developed several indicators.
Important Points on the Prime Number Oscillator
- You can use the prime numbers oscillator indicator to spot market turning points.
- When the oscillator remains at the same high point for two consecutive periods in the positive range, consider selling.
- Conversely, when the oscillator remains at a low point for two consecutive periods in the negative range, consider buying.
How to Place the Indicator on Charting Platforms?
If traders want to know more about the Prime Number Oscillator indicator, they can find it in the STUDIES section of Zerodha Kite. They can also use the Kite Mobile App to find out the indicator. The Tolerance Percentage is 5 and we can also set the color. Check the image below to understand how to attach the prime number oscillator. It is the DFC Bank share price chart. You can attach this indicator on to any charts likes daily, weekly, monthly or intraday.
How to use the Prime Number Oscillator Indicator?
- The traders call prime an integer positive number that has no positive integer divisors other than 1 and itself, so it is a positive integer (greater than 1) that has exactly one divisor other than 1.
- Whenever the PNO oscillator is constant and at a high value in a positive chart, a sell signal may take place. Now, once the indicator is low for two consecutive periods and is situated in the negative range, we can identify a buy signal.
The most popular way to use prime numbers in trading is through the prime number oscillator. It is a highly useful technical indicator in identifying changes in the market. The difference between the nearest prime number and the evolution of the price series is that it is easy to see when it is better to buy or sell. The indicator oscillates between +1 and -1. Whenever this indicator is constant and at a high value in the positive chart, the best choice is to sell. Otherwise, when the indicator is low for two consecutive periods and is in the negative range, an acquisition is recommended.