HPI

Definition

The HPI indicator calculates the Herrick Payoff Index that is used to analyze futures and options.

The Herrick Payoff Index is a technical analysis tool that is used to confirm price trends or reversals in derivatives markets using price and volume information to track money flows. Traders often use the indicator as a measure of crowd psychology and to follow money flows in order to make forward-looking decisions.

Note: Since this indicator uses Open Interest data, it can be used with daily data for futures and options only.

Default Inputs

OneCent sets the dollar value of a minimum move in the symbol, 100 by default.

SmoothingFactor sets the factor to use in the exponential moving average, .133 by default.

AlertLength sets the number of bars over which to detect a divergence between Close and HPI, 14 by default.

ColorNomLength sets the number of bars over which to normalize the indicator for gradient coloring, 14 by default.

UpColor sets the color for indicator values that are relatively high over ColorNormLength bars, yellow by default.

DnColor sets the color for indicator values that are relatively low over ColorNormLength bars, cyan by default.

GridForegroundColor sets the color for numbers in Scanner cells when both UpColor and DnColor are set to positive values, black by default.