Mass Index Indicator
Platform: MT5 Type: Reversal Last update: September 22, 2024The Mass Index (MI) indicator is used as an accurate trading tool to pinpoint trend reversals as they occur on the chart.
That forex indicator is built around the changes between the highest and the lowest prices.
These are the adjustable settings:
First smoothing period – defines the opening smoothing period;
Second smoothing period – defines the secondary smoothing period;
Resulting smoothing period – defines the subsequent smoothing period;
Method – defines the calculation method.
The formula for the Mass Index indicator:
The calculations of the Mass Index indicator are based on the following formula:
MI = SUM(EMA(HIGH – LOW, First Period) / EMA(EMA(HIGH – LOW, First Period), Second Period), Resulting Period)
How to use the Mass Index:
When a bullish trend is taking a place, wait till the medium blue line of the Mass Index breaks above 0.00 level and starts pointing down. It means a reversal is underway, but you will need some technical analysis filter to confirm the entry point.
When a bearish trend is taking a place, wait till the medium blue line of the Mass Index breaks below 0.00 level and starts pointing up. It means a reversal is underway, but you will need some technical analysis filter to confirm the entry point.
