FTB-C000557 / Formula component

MFI Bounded Transform

The MFI bounded transform maps the money-flow ratio to a 0-to-100 oscillator.

Intermediate Formula defined 1 linked topicEvidence-reviewed

Definitions

In plain terms

The transform makes the indicator easier to compare on a fixed display scale.

Technical

MFI = 100 - 100/(1+MoneyRatio), equivalently 100×PMF/(PMF+NMF) when both sums are defined.

Scope

A bounded scale does not make the output a probability or guarantee a reversal.

Formula

MFI = 100 - 100/(1 + MoneyRatio)
LaTeX: MFI = 100 - \frac{100}{1+MoneyRatio}
SymbolMeaningUnit
MoneyRatiopositive-to-negative flow ratiodimensionless

Output unit: 0 to 100

Examples

  • A reviewer computes MFI Bounded Transform from a small OHLCV fixture and checks readiness, units, and edge cases before publication.

Common misconceptions

  • A bounded scale does not make the output a probability or guarantee a reversal.

Concept relationships

Prerequisites

Related

Required by

Where this concept is used

Evidence and governance

  1. Money Flow Index (MFI) TradingView · official platform documentation

    Supports: preferred label, short definition, technical definition, formula

    Limits: Common overbought/oversold zones are descriptive conventions, not probabilities or guarantees.

  2. Money Flow Index technical note TA-Lib · first party technical publication

    Supports: preferred label, short definition, technical definition, formula

    Limits: A library note does not settle application-specific edge cases or locale wording.

  3. Volume indicators function group TA-Lib · first party technical publication

    Supports: preferred label, short definition, technical definition, formula

    Limits: Library compatibility does not by itself prove a project's seed, warm-up, or missing-data policy.

  4. Closing Price Investor.gov · official standard

    Supports: preferred label, short definition, technical definition, formula

    Limits: A close is not automatically an adjusted close and may vary by market session convention.

Reviewed by
fintech-builder-batch-010
Last reviewed
2026-08-01
Next review
2027-08-01
Record status
evidence reviewed

This record is evidence-reviewed and readable, but not yet promoted to published — it is served noindex,follow and excluded from the sitemap.