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The Mass Index uses the high-low differential to provide a smoothed volatility measure. The indicator typically fluctuates in the mid-20s; readings near the high end of the historical range suggest increasing volatility, which increases the chances for a trend reversal. Although Dorsey set the bulge threshold at 27, chartists should consider a lower threshold to produce more signals. Keep in mind that the Mass Index does not have a directional bias. The directional bias depends on the existing trend.
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