Mass Index - Technical Analysis from A to Z
The Mass Index was designed to identify trend reversals by measuring the narrowing and widening of the range between
the high and low prices. As this range widens, the Mass Index increases; as the range narrows the Mass Index decreases.
The Mass Index was developed by Donald Dorsey. According to Mr. Dorsey, the most significant pattern to watch for is
a "reversal bulge." A reversal bulge occurs when a 25-period Mass Index rises above 27.0 and subsequently falls below 26.5.
A reversal in price is then likely. The overall price trend (i.e., trending or trading range) is unimportant.