Mass Index: a 25-bar sum of the ratio of single to double 9-bar EMAs of the range, with setup 27 and trigger 26.5.
Overview
The Mass Index, by Donald Dorsey, watches for range expansion that can come before a reversal. It plots in its own pane with a setup level at 27 and a trigger at 26.5.
The line turns orange once it rises above the setup level and stays that color until it drops below the trigger. This is the reversal bulge.
How it works
Single = EMA(high - low, 9). Double = EMA(single, 9). Mass Index = sum of (single / double) over 25 bars.
The pattern arms when the line goes above 27 and completes when it falls below 26.5.
How to use it
- Some traders watch a completed bulge as a sign the current trend may turn.
- Use a direction tool to decide which way the turn could go.
- Use the orange color to see when the pattern is armed.
- Look at how often bulges happened on past bars of the symbol.
These are ways some traders read it, for learning. They are not trade signals.
Settings
| Setting | Default |
|---|---|
| Settings | |
| Sum LengthNumber of bars over which the single/double EMA ratio is summed. | 25 |
| EMA LengthLength of the single EMA of the high-low range and of its double smoothing. | 9 |
| Setup LevelReversal bulge setup level; a rise above it arms the pattern. | 27 |
| Trigger LevelReversal bulge trigger level; a decline below it after a setup completes the pattern. | 26.5 |
| Style | |
| Mass IndexLine color while no reversal bulge is armed. | #787b86 |
| ArmedLine color from the rise above the setup level until the decline below the trigger level. | #ff9800 |
| LevelsReversal bulge levels color. | #787b86 |
Alerts
You can alert on its line crossing a value or the candle close (from the chart's + menu); checked while ZoroCharts is open.
Notes and limits
- Works on any symbol and timeframe; it only needs candle data.
- It shows no direction by itself.
Education only. Not financial advice. Indicators mark what happened on the chart; they do not predict what price will do. Trading futures, forex, crypto and other markets carries a high level of risk and may not be suitable for everyone.