Mass Index (MI) – FX Replay Guide

The Mass Index (MI) is a leading technical analysis tool available on FX Replay that helps you spot potential trend reversals by analyzing price range volatility. While the indicator doesn’t predict direction, it’s excellent for signaling when a major shift may be coming.

How It Works:

1. Calculation Method

• Compares the 9-period EMA of the daily high-low range to a 9-period EMA of itself.
• Summed over 25 periods to form the Mass Index value.

2. Reading the Signal

• Bulge Alert:
  • MI rises above 27, then drops below 26.5.
  • This formation is considered a reversal signal.
• Confirmation Required:
  • Use price action, moving averages, or FX Replay’s other tools to determine the direction.

3. Strategy Use

• Use MI bulge signals to plan potential entry/exit points.
• Combine with RSI, MACD, or structure indicators for better confirmation.
• Example: MI bulge + 9 EMA turning down + pending short entry below local low.

4. Final Tips

• The MI doesn’t say which direction the market will go—just that a change is likely.
• Use FX Replay’s backtesting feature to evaluate how MI fits into your strategy.
• Incorporate proper risk management and always validate with multi-indicator confluence.

‍