The Mace Index identifies potential trend reversal points by analyzing changes in the price range (the difference between the highest and lowest prices of the day). Specifically, the indicator first calculates the difference between the highest and lowest prices of the day, and then performs two exponential moving average smoothing processes (first smoothing and second smoothing); the final Mace Index value is obtained by dividing the result of the first smoothing by the result of the second smoothing. When the Mace Index value rises or falls significantly, accompanied by an expansion or contraction of the price fluctuation range, it is usually regarded as a signal of potential trend reversal. For example, when the Mace Index falls first and then rebounds, and at the same time the price fluctuation range begins to shrink, it may indicate the end of the previous trend and the beginning of a new trend. This indicator is mainly used to find price reversals after overbought or oversold areas, especially after a rapid rise or fall in prices, which can assist in judging the continuity or reversal possibility of the trend. Compared with the simple price fluctuation range, the Mace Index reduces noise through the exponential moving average and pays more attention to the trend changes of the price fluctuation range, thereby providing a clearer trend reversal signal.