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Extra indicators

Mass Index

Watches the candles' range widen and narrow to warn of trend reversals.

2 min read · Try it on a live chart ↗

The idea in plain words

Before many reversals the high–low range first widens (a "bulge"). The Mass Index sums a smoothed ratio of the range over 25 candles to spot that bulge.

How it is calculated

E1 = EMA(9) of the range, E2 = EMA(9) of E1; Mass = the sum of E1 ÷ E2 over 25 candles.

Mass = Σ₂₅ (EMA(H − L, 9) ÷ EMA(EMA(H − L, 9), 9))

How to use it

  • The "reversal bulge": Mass rises above 27 and then falls back below 26.5.

Drawing conclusions

  • It does not say which way the reversal goes: combine it with a trend indicator.

Example

EURJPY daily: Mass climbs to 27.4 and drops to 26.3 while a 9-day EMA turns down: a sell signal in the classic method.

Prices in examples are illustrative.

Watch out for

  • Rare signals; in calm markets it can stay quiet for months.

A little history

Introduced by Donald Dorsey in 1992.

Educational content only. No indicator or pattern predicts the future, and nothing here is investment advice.