Mass Index Reversal Bulges for Potential Trend-Turn Signals
Summary
The Mass Index is described as a way to watch for possible trend turns through changes in the distance between the highest and lowest prices. A widening range raises the index, while a narrowing range lowers it. The document attributes the indicator to Donald Dorsey and identifies a reversal bulge as its main signal: the 25-period index rises above 27 and subsequently drops below 26.5.
The suggested method uses a 9-period exponential moving average to choose a direction when a bulge appears. The document says to buy when that average is falling and sell when it is rising. It provides the rule but no performance data, market examples, or risk controls. The signal is presented as potentially relevant regardless of the prevailing trend or whether prices are rising, falling, or ranging; readers should treat it as an indicator description rather than evidence of predictive reliability.
Key ideas
- The Mass Index tracks changes in the high-low price range.
- A reversal bulge occurs when the 25-period reading moves above 27 and later below 26.5.
- A 9-period exponential moving average is proposed to determine trade direction after a bulge.
- The document supplies no testing results or risk-management guidance for the signal.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.