Mass Index
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Description
The Mass Index was designed by Donald Dorsey as a measure of the range between the high and low prices. The wider the range, the higher the Mass Index. According to Dorsey a reversal bulge (when the Mass indicator exceeds 27 then dips below 26.5) signifies an imminent reversal of the trend.
The Mass Index is computed by summing the ratios of a singly and doubly smoothed exponential moving average of the range. You choose the term for the moving averages. Dorsey recommends nine days.
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