Herrick Payoff Index
payment index Herrick (Herrick Payoff Index, HPI) confirms the strong trends and helps determine when they change its direction; monitors prices, trading volume and open interest (existing commitments), combining them into a single index.
In MetaTrader 5 Herrick index can be displayed as a bar graph or a line graph for all trading tools, which translates open interest. Existing commitments or open interest - a total amount of existing contracts (futures and options) on which the calculation has not yet been made. In MetaTrader 5 is displayed as "Current liabilities" in the "Details" in the window "Market Watch".
Features
- Easy to use - there are no complicated settings to adjust.
- The color of the indicator level, the vertical scale set via the standard menu display settings window.
- Ability to display the indicator as a histogram or a line graph.
- The indicator contains a stand-alone (independent of the indicator) Online minute drive open interest stories, which is stored in the file.
- For one trading instrument is always loaded only one online store, although indicators "Open Interest" and "payments Herrick Index" can be downloaded a few.
- The file is saved in a shared folder of all terminals, so the accumulated history for the construction of indicators will be available in all of the MetaTrader 5 terminal.
- History files are sorted for each trading server and tools and replenished as long as any of the terminals loaded with at least one indicator "Open Interest" or "payment index Herrick" in the relevant contract and the trading server.
- Cumulative history is available for the construction of indicators on any timeframe. Note that the minute history of open interest should be enough for at least two bars to display the payout index Herrick.
Input parameters
- Draw type - method of displaying the indicator. By default, the histogram can be selected as a line indicator.
- One cent move - scaling factor; The unit cost of price changes by 1 cent. Herrick recommends using the 100 for most items. The exception is silver, for which this value is 50. The default setting is 100.
- Multiplying Factor - the multiplication factor used for exponential smoothing index. Small values result in a sensitive indicator of the short-term; higher values create a slow, long-term indicator. "P" or "Period" parameter on similar parameters assigned to the exponential moving average. The default is 10.
indicator buffers
| 0 | The index value corresponding to the bar / suppository main graph |
| 1 | LED color (see "Color") |
Colors
In the standard indicator for the index Coloring following rules are adopted.
- Yellow - the index value is zero.
- Red - the value of the index is less than zero.
- Blue - the index value is greater than zero.
Colors can be changed in a standard window "Settings" display.
Interpretation Herrick Payoff Index
HPI measures the inflow or outflow of capital from the market, it helps to identify when strong players quietly buy or sell assets. If the index is above zero - the amount of funds coming to market is growing (bullish), below zero - there is outflow (bearish). But the most powerful HPI signals generated when differences of prices (see the example in the screenshot).
There are other signals that can be accessed using the HPI. Their description is freely available on the Internet or, for example, in the book "How to play and win at the stock exchange" Aleksandra Eldera.
The product can be amended and changed. Learn about it can be in the "What's New".
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