# Technical Studies Reference

### Herrick Payoff Index

The Herrick Payoff Index helps to show the amount of money flowing into or out of a futures contract. This study uses Open Interest in its calculations. Therefore, the symbol of the chart must contain Open Interest. Only Historical Daily data charts provide Open Interest, not Intraday charts.

The best analysis will be achieved by using Open Interest data that includes the total Open Interest for all the contracts for the underlying market. Some data services will provide open interest data this way or use certain symbols to provide total Open Interest for all contracts for the underlying market.

#### Inputs

• Value of a .01 move: This is the price value of a .01 price move.
• Smoothing multiplier: This is a smoothing multiplier. Using a larger value makes the Herrick Payoff Index less smooth and using a smaller value makes the Herrick Payoff Index more smooth.
• Maximum or Minimum Open Interest: 1= maximum, 2= minimum: In the calculation of the Herrick Payoff Index, it is necessary to determine the maximum or minimum of the open interest at the current calculation index and the prior index. Set this Input to 1 to use the maximum or to 2 to use the minimum between the current open interest and the prior open interest. Formulas: max(CurrentOpenInterest, PriorOpenInterest), min(CurrentOpenInterest, PriorOpenInterest).
• Divisor: This divisor is used to scale up or down the Herrick Payoff Index.