Definitions
In plain terms
It is near +1 when the close is near the high and near -1 when it is near the low.
Technical
MFM_t = (2C_t-H_t-L_t)/(H_t-L_t), with a declared zero-range policy; valid nonzero ranges produce values from -1 to +1.
Scope
The multiplier describes bar-close location, not the direction of every trade.
Formula
MFM_t = (2C_t-H_t-L_t)/(H_t-L_t)MFM_t = \frac{2C_t-H_t-L_t}{H_t-L_t}Output unit: dimensionless
Examples
- A reviewer computes Money Flow Multiplier from a small OHLCV fixture and checks readiness, units, and edge cases before publication.
Common misconceptions
- The multiplier describes bar-close location, not the direction of every trade.
Concept relationships
Where this concept is used
Evidence and governance
- Accumulation/Distribution (A/D) Line TradingView · official platform documentation
Supports: preferred label, short definition, technical definition, formula
Limits: Does not turn the line into market breadth, identify trade initiators, or eliminate gap blind spots.
- Chaikin Oscillator TradingView · official platform documentation
Supports: preferred label, short definition, technical definition, formula
Limits: The oscillator is not adopted as a causal or predictive claim for CMF or ADL.
- 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.
- 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.