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MetaStock
Indicator - Mass
Index
rev. 01/06/97
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 the range widens the
Mass Index increases; as the range narrows the
Mass Index decreases.
The MASS Index
appeared in the June 92 Technical Analysis of
Stocks & Commodities article "The
Mass Index", by Donald Dorsey.
Taken from Stocks
& Commodities, V. 10:6 (265-267): The Mass
Index by Donald Dorsey
"Range
oscillation, not often covered by students of
technical analysis, delves into repetitive market
patterns during which the daily trading range
narrows and widens. Examining this pattern, Donald
Dorsey explains, allows the technician to forecast
market reversals that other indicators may miss.
Dorsey proposes the use of range oscillators in
his mass index."
The following is
the MetaStock formula for
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Sum(Mov(
( H - L ) ,9 ,E) / Mov(Mov( ( H - L ) ,9
,E) ,9 ,E ) ,25 )
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