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Mass Index

A technical indicator developed by Donald Dorsey in the early 1990s. The Mass index is a technical indicator that identifies market reversals by measuring the range between previous highs and lows of a financial instrument. A reading of the 25-period Mass Index above 27.0 and then a decline below 26.5 is referred to as a ""reversal bulge"" which signifies a potential reversal. A potential buy signal is triggered when a ""reversal bulge"" occurs while a 9-period Exponential Moving Average of prices is moving downwards. Similarly, a potential Sell signal is triggered when the ""reversal bulge"" occurs while the 9-period Exponential Moving Average is trending upwards.