Mass Index
Categories: Index Funds
No, not that humiliating test you have to take every time you resolve to lose weight...the one where they do some math to tell you how fat you are. That’s the body mass index.
This measure relates to analyzing financial markets. The mass index tracks the size of trading ranges for stocks (or whatever asset you're following). It's a technical analysis tool developed by a guy named Donald Dorsey. The indicator is based on the premise that a widening trading range can predict changes in a stock's direction.
The index tracks highs and lows of a stock's trading range. When the range widens, it points to a potential reversal.