Variable List Abbreviation: MassIndex
Variable Mode(s): Stock, Futures1, and Futures2
[ Note: appears in indicator list only after high and low selected ]
Parameter(s): MassIndex summation time periods, MassIndex numerator exp factor, MassIndex denominator exp factor
Identifies important price trend changes based upon the average range in price over n (time periods) time periods. A gradual increase in range (reversal bulge) generally indicates the possibility of a market turn. An increasing range is indicated by values of the mass index above 25, while a decreasing range is indicated by values below 25.
Mass Index = Sum over n time periods of ( numerator / denominator )
Numerator = Exponential Moving Average of (High-Low)
Denominator = Exponential Moving Average of Numerator