"WallStreet" Surfers

[GreenReeper]

The calculation is fairly straightforward. First, the Single EMA provides the average for the high-low range. Second, the Double EMA provides a second smoothing of this volatility measure. Using a ratio of these two exponential moving averages normalizes the data series. This ratio shows when the Single EMA becomes large relative to the Double EMA. The final step, a 25-period summation, acts like a moving average to further smooth the data series. Overall, the Mass Index rises as the high-low range widens and falls as the high-low range narrows. A spreadsheet example is shown below.