Mass Index Node
Range-Based Volatility Reversal Detector
Mass Index uses the ratio of the 9-period to 27-period EMA of the high-low range to identify potential trend reversals. Extreme high readings (30+) suggest potential reversals after volatility buildup, while the indicator normalizes across price ranges.
Formula
Parameters
| Parameter | Default |
|---|---|
| Short EMA | 9 |
| Long EMA | 27 |
| Sum Period | 25 |
Use Cases
1. Reversal Signal Detection
Identify when elevated mass readings drop below threshold as trend reversal trigger.
2. Volatility Buildup Confirmation
Confirm that volatility is increasing (mass rising above 27-30 level).
3. Range Contraction Signal
Low readings indicate range contraction preceding volatility expansion.
4. Multi-Timeframe Confirmation
Use across timeframes to confirm reversal probabilities at key levels.
Tips & Best Practices
📊 Focus on Extremes
MI > 30 indicates elevated reversal risk; MI < 15 suggests setup formation.
⚡ Trend Confirmation
Best used with trend confirmation from price action or moving averages.
💰 Watch the Direction
Declining MI from high levels = reversal signal stronger than rising from low.
⚠️ Avoid Low Volatility
Not effective in tight ranges; works best in trending markets.
Related Indicators
ATR
Volatility base measure
Choppiness Index
Trend vs chop detection
ADX
Trend strength indicator
Bollinger Bands
Range-based support/resistance