# 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.

# 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.

## Mass Index Calculation

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.

## Application of Mass Index

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.