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Technical Studies Reference


On Balance Open Interest

This study calculates and displays the On Balance Open Interest.

This study can only be used on a Historical Daily futures chart which contains Open Interest data. If it is used on an Intraday chart, then instead it will use the Number of Trades per chart bar data instead of Open Interest data because that is not available in Intraday charts.

Let \(C_t\) be the value of the Close Price at Index \(t\). We denote the value of the On Balance Open Interest at Index \(t\) as \(OI^{(OB)}_t\), and we initialize it to zero internally (that is, \(OI^{(OB)}_0 = 0)\), though this initial value is not displayed as output. We compute \(OI^{(OB)}_t\) in terms of the Open Interest for \(t > 0\) as follows.

\(\displaystyle{OI^{(OB)}_t = \left\{ \begin{matrix} OI^{(OB)}_{t - 1} + OI_t & C_t > C_{t - 1} \\ OI^{(OB)}_{t - 1} & C_t = C_{t - 1} \\ OI^{(OB)}_{t - 1} - OI_t & C_t < C_{t - 1} \end{matrix}\right .}\)

Inputs

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Spreadsheet

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On_Balance_Open_Interest.36.scss


*Last modified Wednesday, 28th September, 2022.