Mass_Index - MetaTrader 5 Script | Forex Indicator Download - MT4/MT5 Resources

The Quality Index is designed to detect trend shifts based on changes in bandwidth between the highest and lowest prices. If the bandwidth expands, the quality index increases, and if the bandwidth narrows, the quality index decreases.

Quality Index was developed by Donald Dorsey. A special model built from this indicator called the "Reversal Bulge" should be considered the most important signal from the Quality Index. A reversal bulge forms when the 25-period Quality Index first exceeds 27 and then falls below 26.5. In this case, the price reversal is likely to be independent of the general nature of the trend, and it does not matter whether the price moves up, down, or fluctuates within the trading range.

In order to detect exactly what signal (buy or sell) a reversal bulge generates, a 9-period exponential moving average of the price is often used. When a reversal bulge appears, you should buy if the moving average is falling (eyeing the reversal) and sell if the moving average is rising.

The indicator uses the SmoothAlgorithms.mqh library class (must be copied to terminal_data_folder\MQL5\Include). The use of the class "Average price series for intermediate calculations without using additional buffers" is described in detail in the article.

The indicator was first implemented in MQL4 and published in the code base on February 8, 2007.

Figure 1. Quality Index Indicator

Attachment download

📎 mass_index.mq5 (7.57 KB)

📎 smoothalgorithms.mqh (134.03 KB)

Source: MQL5 #2428