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Basics of Trading Course
Module 1: Technical Analysis Basics
Module 2: Chart Patterns
Module 3: Technical Indicators
Module 4: Candlestick Chart Formations
Module 5: The Psychology of Trading
Module 6: Money Management
Module 7: Position Sizing
Module 8: Intro to Fundamental Analysis
Module 9: Economic Releases that Move the Markets
Module 9a: Pulling It All Together
Forex Trading Course
Module 1: The Basics of Forex Trading
Module 2: The Logistics of Forex Trading
Module 3: The Logistics of Forex Trading Part 2
Module 4: What Moves the Forex Market
Module 5: Trading the US Dollar
Module 6: Trading the Euro
Module 7: Trading the Japanese Yen
Currency Futures
Market Terminology
Options
Posting a Forum Chart
Trade Execution
Trading Fundamentals
Economic Indicators
Flows/Central Banks
Trading Technicals
Charting
Trading Techniques

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Category Name: Trading Technicals

» Sub-Category Name: Charting

Mass Index

By: vss2000.com

Mass Index ( MASS )
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.

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.

WARNING: FOREIGN EXCHANGE TRADING AND INVESTMENT IN DERIVATIVES CAN BE VERY SPECULATIVE AND MAY RESULT IN LOSSES AS WELL AS PROFITS. FOREIGN EXCHANGE AND DERIVATIVES TRADING IS NOT SUITABLE FOR MANY MEMBERS OF THE PUBLIC AND ONLY RISK CAPITAL SHOULD BE APPLIED. THE WEBSITE DOES NOT TAKE INTO ACCOUNT SPECIAL INVESTMENT GOALS, THE FINANCIAL SITUATION OR SPECIFIC REQUIREMENTS OF INDIVIDUAL USERS. YOU SHOULD CAREFULLY CONSIDER YOUR FINANCIAL SITUATION AND CONSULT YOUR FINANCIAL ADVISORS AS TO THE SUITABILITY TO YOUR SITUATION PRIOR TO MAKING ANY INVESTMENT OR ENTERING INTO ANY TRANSACTIONS.