Constructing four MFI bar states from range and volume

A per-bar range-to-volume identity

A per-bar MFI value is constructed as that bar's high-to-low range divided by that bar's volume. Range is high minus low on the same bar and is used as the numerator of the MFI identity. Volume is the denominator.

MFI is a per-bar efficiency measure. The four named states below are built from that stored identity, not from a second definition of range or volume.

Four named paint-bar states

Four named bar states are produced by pairing the change in MFI with the change in volume versus the immediately prior bar. A paint-bar-state is a Boolean chart condition that colors a bar when one of the four MFI-and-volume comparisons is true.

The squat state is a lower MFI together with higher volume than the prior bar. The green state is a higher MFI together with higher volume than the prior bar. The fade state is a lower MFI together with lower volume than the prior bar. The fake state is a higher MFI together with lower volume than the prior bar.

Store the identity, then compare

One construction first stores the range-over-volume identity as a named calculation, then builds each named state from comparisons of that stored MFI and volume with the prior bar.

Where two encodings disagree

Two encodings of the same four states differ on whether an unchanged MFI or unchanged volume still counts as belonging to the named state.

Editorial reading of the classifier

Editorial interpretation: treat the range-to-volume identity as a two-bit classifier. Once this bar's efficiency and participation are compared with the prior bar, the four named paint-bar states become explicit, colorable, and falsifiable construction choices, including the zero-volume case that must fail closed.

The archive describes the historical workflow. The two-bit classifier reading is editorial and is not attributed to the archive.