Mass index

src: advancedcardioservices.com

The mass index is an indicator, developed by Donald Dorsey, used in technical analysis to predict a trend reversal. This is based on the idea that there is a trend reversal when the price range widens, and therefore compares the previous trading range (highest minus the lowest).

Indeks massa untuk suatu komoditi diperoleh dengan menghitung rata-rata bergerak eksponensial selama periode 9 hari dan rata-rata pergerakan eksponensial dari rata-rata ini (rata-rata "ganda"), dan menjumlahkan rasio kedua ini selama beberapa hari tertentu (biasanya 25).

${\ displaystyle Mass = Jumlah [25] \; dari \; {EMA [9] \; dari \; (tinggi-rendah) \ over EMA [9] \, dari \, EMA [9] \; of \; (high-low)}}  ÂÂ$

Generally the EMA and EMA EMA are smoothed close enough, making their ratio approximately 1 and about 25.

According to Dorsey, the so-called "reversal reversal" is a possible trend reversal signal (regardless of trend direction). Such a bulge occurs when the 25 day mass index reaches 27.0 and then falls down 26 (or 26.5). The 9-day prime moving average is usually used to determine whether the bulge is a buy or sell signal.

This formula uses intraday range values: not the "actual range", which adjusts for full and partial loopholes. Also, the "bulge" shows no direction.

Video Mass index

References

Source of the article : Wikipedia