Mass Index - non-traditional oscillator
Mass Index indicator is a mass indicator - a non-traditional oscillator and developed by Donald Dorsey for detecting trend reversals in the market. The Mass Index oscillator is based on the principle of changing the range width between the maximum and minimum prices. The mass index increases when the range expands and decreases when it narrows.
The creator of the Mass Index believes that the most important signal is the so-called "reversal hump" - a pattern formed by the indicator chart. It is formed when the index first decreases to 27, then when it falls below 26.5. In this case a reversal of the current trend is a very probable scenario.
It is worth bearing in mind that this signal can be a sell signal, like the usual oscillator, and to sell, so to get a complete picture of what is happening requires the use of any trend indicator. For example, Moving Average.
Commentary from ForTrader.org: if you have a good trading strategy, but have a problem with the moment to enter the market, try Mass Index oscillator. Perhaps this is what you need.