MASS index

[Jean Marc Delorme]

Hello !

Where I can get this indicator ?

Mass Index.

Thanks in advance.

PipeTrader

Trade to live and Live to trade!

[Sergey Golubev]

I looked at Achelis "Technical Analysis from A to Z":

Mass Index

Overview

The Mass Index was designed to identify trend reversals

by measuring the narrowing and widening of the range

between the high and low prices. As this range widens,

the Mass Index increases; as the range narrows

the Mass Index decreases.

The Mass Index was developed by Donald Dorsey.

Interpretation

According to Mr. Dorsey, the most significant pattern

to watch for is a "reversal bulge." A reversal bulge

occurs when a 25-period Mass Index rises above 27.0

and subsequently falls below 26.5. A reversal in price

is then likely. The overall price trend

(i.e., trending or trading range) is unimportant.

A 9-period exponential moving average of prices is

often used to determine whether the reversal bulge

indicates a buy or sell signal. When the reversal

bulge occurs, you should buy if the moving average

is trending down (in anticipation of the reversal) and

sell if it is trending up.

Calculation

To calculate the Mass Index:

Calculate a 9-day exponential moving average ("EMA")

of the difference between the high and low prices.

Calculate a 9-day exponential moving average

of the moving average calculated in Step 1.

Divide the moving average calculated in

Step 1 by the moving average calculated in Step 2.

Total the values in Step 3 for the number of

periods in the Mass Index (e.g., 25 days).

mass_index.bmp

[Jean Marc Delorme]

Thanks Newdigital !

I find a code for DealBook.

Can sombody help me to translate in MT4 ??

-----------------------------------------------------------

indicator Mass_Index;

input period = 25;

draw line("Mass");

vars ahl(series), aahl(series), i(number), sum(number), en(number);

begin

ahl := ema(high - low, 9);

aahl := ema(ahl, 9);

sum := 0;

en := front(aahl) + period - 1;

if en <= back(aahl) then begin

for i := front(aahl) to en do

if aahl 0 then

sum := sum + ahl / aahl;

line[en] := sum;

for i := en + 1 to back(aahl) do begin

if aahl 0 then

sum := sum + ahl / aahl;

if aahl 0 then

sum := sum - ahl / aahl;

line := sum;

end;

end;

end.

---------------------------------------------------------------------------------------------------------

indicator Price_Oscillator;

input price = close, short_period = 1, long_period = 25, percent_mode = true;

draw line("Price Osc");

vars avg1(series), avg2(series);

begin

avg1 := sma(price, short_period);

avg2 := sma(price, long_period);

if percent_mode then

line := 100 * (avg1 - avg2) / avg2

else

line := avg1 - avg2;

end.

--------------------------------------------

Thanks...

[Jean Marc Delorme]

The Mass Index was developed by Donald Dorsey to identify trend reversals by using the changes of daily price ranges to identify reversals in trends. As the price ranges narrow, the Mass Index decreases. As the price ranges widen, the Mass Index increases.

Mass Index

A significant pattern to watch for is the "reversal bulge." These occur when on a 25-period plot the Mass Index surpasses 27 then falls past 26.5.

A 9-period Exponential Moving Average of prices is often used to determine if the reversal bulge indicates a buying or selling. If a reversal bulge occurs, buy if the moving average is trending down (in anticipation of the reversal) and sell if it is trending up.

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 forex 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.

[Mladen Rakic]

Upgraded mass index (it was about time :))

[sebatian]

mladen:

Upgraded mass index (it was about time :))

Can it be multi color (for level breaks)?

[Mladen Rakic]

sebastianK:
Can it be multi color (for level breaks)?

Will try the original way for color change (described by Donald Dorsey) - when it should signal probably price reversals

[Mladen Rakic]

sebastianK:
Can it be multi color (for level breaks)?

Here is a version that changes the color when it crosses the higher level, and reverts to no color when the break bellow the lower level happens (that should signal a possible price reversal, according to Donald Dorsey)