Mass Index

The Mass Index is an indicator devised by Tushar Chandle and Donald Dorsey. For its construction, an “Exponential Moving Average” of the range of price fluctuation (HIGH – LOW difference) of a fixed period is used, normally 25 periods. If the difference HIGH – LOW increases, the Mass Index increases, on the contrary if the difference HIGH – LOW decreases, the Mass Index decreases.
The use recommended by the creator of this indicator also foresees the use of a “Moving Average” on the CLOSE to confirm whether the indication of the Mass Index is BUY or SELL. So if the Mass Index is going down and the “Moving Average” is going uphill, there may be a bearish reversal and if the Mass Index and the “Moving Average” are going down a bullish reversal may occur.