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Forex Ensiklopedia

Mass Index

Mass Index is the tool for technical analysis applied to inform about a possible reversal of trend. Concept of Mass index implies that price change between High and Low makes the trend to changes its direction. The longer distance between lowest and highest points of price is, the higher volatility of finance instrument is observed.

Mass Index is a rather sensitive indicator and is able to generate alerts on change of price direction when other indicators are not able to predict those reversals. Embossment of the indicator line acts as an alert of reversal of price movement.

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