Category: Indicator > Oscillators
The Mass Index uses the range of the bars to calculate several values, including exponential averages of the ranges. It then calculates and plots an index of these calculations.
The Mass Index is used in trending markets to monitor direction and warn of potential changes in market direction.
The Mass Index signals a possible price reversal when the Mass Index line crosses above the setup line and subsequently falls below the trigger line. This is known as a reversal bulge. The Mass Index does not identify the trend direction, but rather warns of possible reversals.
Setup - Value signifying a Setup of a possible trend reversal
Trigger - Value, following a Setup, signifying a reversal (reversal bulge)
INPUTS: SETUP(27), TRIGGER(26.5);
PLOT1(MASSINDEX(9, 25), "MASSINDEX");
IF PLOT1 CROSSES OVER PLOT2 THEN
TRIGGERSTATUS = TRUE;
IF PLOT1 CROSSES BELOW PLOT3 THEN
TRIGGERSTATUS = FALSE;
IF TRIGGERSTATUS = TRUE AND PLOT1 CROSSES BELOW PLOT3 THEN
ALERT("MASS INDEX HAS TRIGGERED AN ALERT");