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Random article: 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.
By technical analysis we should basically understand employment of price chart (and results of its math interpretation) for further market and price forecast. Technical analysis rests upon repeated nature of market and implies that ups and downs of currency quotations on charts are rotated according to certain time periods. An advantage of technical analysis is its universal application: with its help one can research any financial contract for any period of time. The market accounts for everything. That means that any event, which could affect price behavior is already accounted by market and is reflected on the price chart. This proposition means that all factors impacting the price will be definitely reflected in its behavior, therefore, it is required to monitor quote graph.
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