Mass Index

Business, Legal & Accounting Glossary

Definition: Mass Index


Mass Index


Full Definition of Mass Index


The Mass Index serves as an indicator of upcoming price reversals by quantifying the difference between the high and low prices of a stock over time.

The mass index represents an n period sum of a ratio of an Exponential Moving Average of High-Low price divided by an Exponential Moving Average of the first average. The input parameters are (1) the period for the first Exponential Moving Average; (2) the period for the EMA of the first average and (3) the summation period for the ratio.

A reversal bulge occurs when a 25-period mass index rises over 27 and then falls below 26.5. The technical analyst should consider going long when the reversal bulge occurs and 9-period EMA of prices is trending down.  Likewise, the technical analyst should consider going short when the reversal bulge occurs and 9-period EMA of prices is trending up.


Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/mass-index/
Modern Language Association (MLA):
Mass Index. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
March 28, 2024 https://payrollheaven.com/define/mass-index/.
Chicago Manual of Style (CMS):
Mass Index. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/mass-index/ (accessed: March 28, 2024).
American Psychological Association (APA):
Mass Index. PayrollHeaven.com. Retrieved March 28, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/mass-index/

Definition Sources


Definitions for Mass Index are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 23rd March, 2020 | 0 Views.