Charts

Mass Index (MI)

Mass Index (MI)

The Mass Index indicator, developed by Donald Dorsey, uses the bar range to identify trend reversals based on range expansions. It is more of a volatility indicator as it does not have a directional bias. It identifies trending and congession areas, which can occur before change in trend.

Configuration Options

  • Period: Number of bars to use in the calculations.
  • Bulge Threshold: TBD
  • Color Selectors: Colors to use for graph elements.
  • Display Axis Label: Whether to display the most recent value on the Y axis.

Formula

\[EMA_{1} = 9-period\;EMA\;of\;the\;range\;(H-L)\]

\[DEMA_{1} = 9-period\;EMA_{1}\]

\[EMA Ratio = \frac{EMA_{1}}{DEMA_{1}}\]

\[MI = 25-period\;sum\;of\;the\;EMA\;Ratio\]