PriMe Rate Indicator

Prime Rate is the rate US bank's lend to large and safe corporates)

Calculation

Rules
8% and above is high, below is low.
Increases are bearish, reductions are bullish.

Buy signals

1. Any initial cut if below 8% is a buy signal.
2. If prime peak is 8% or higher, a buy signal comes on either the second of two cuts or on a full 1% cut.

Sell signals

1. Any initial hike in the prime rate if the prime’s low is 8% or greater.
2. If the prime’s low is less than 8%, a sell signal comes on the second of two hikes or on a full 1% jump in the rate.

 

Prime Rate Indicator – when it gives a buy signal award 2 points, when it gives a sell signal award 0.

 

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