Define: Mass Index

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Definition: Mass Index



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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.


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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