Abbreviation:
Category: Economic
Input Parameters:
| Name | Range | Default |
| Fed Funds Index | ||
| Prime Rate | ||
Calculation:
Fed Funds Index – Prime Rate
Discussion:
A prime rate increase is usually a bearish sign, while a prime rate decrease is usually considered a bullish sign. Since changes in the federal funds rate are usually followed by corresponding changes in the prime rate, positive values are considered bearish, while negative values are considered bullish.