Mass Index

Mass Index is a technical indicator developed by Donald Dorsey to identify trend reversals. The calculation measures the difference between high and low prices, it is weighted based on the difference. Mass Index goes up on drastic price differences and down on slight differences. The indicator should be used to buy when the moving average decreases and sell when it rises.

Calcutation:
Mass Index= sum [EMA 9 days on (high-low)/EMA 9 days on (High-low)].

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Tags: Calculation, Dorsey