Mass Index

Mass Index

The Mass Index identifies pricechanges by indexing the narrowing and widening change between high and lowprices. Mass Index, reversals may occur when a 25-period Mass Index rises above27 or falls below 26.5. The Mass Index is a range oscillator. It is designed toidentify possible market extremes by comparing range between daily high and lowprices. The greater the distance, the greater the volatility, and vice versa.

It is used to identify trendreversals. The Mass Index is a range oscillator that uses changes in tradingprice and provides unique market reversal forecasts that other indicators maymiss. The Mass Index attempts to identify reversals by comparing the tradingrange between High & low prices for each period. A bulge in the index linesignals reversals.