Air/fuel displays which hook up to the stock oxygen sensor are not lambda meters. These displays simply display the stock oxygen sensor voltage on a row LEDs. There are three problems with this - the stock oxygen sensor lambda range is far to narrow to be of use when tuning, the stock oxygen sensor output is not linear and the display performs no compensation for the oxygen sensor temperature.
A stock oxygen sensor is designed to be used by the ECU to keep the mixture near stoichiometric, which is the optimum air/fuel ratio for the catalytic converter to work. The stock oxygen sensor range is usually only about lambda 0.95 - 1.04, while tuning we usually want a display that will be accurate from lambda 0.75 - 1.10
Lambda vs Air/Fuel ratio
The air/fuel mixture is expressed either as the ratio of air to fuel vapour or as a lambda value. The lambda value is derived from the stoichiometric air/fuel ratio, which is the chemically correct ratio of air to fuel for complete combustion to take place. The stoichiometric ratio is 14.7:1 when expressed as an air/fuel ratio, or 1 when expressed as a lambda value. A richer mixture will have a lower air/fuel ratio and lower lambda value. e.g. an air/fuel ratio of 12.5:1 equals a lambda value of 0.85, and is a typical value for a naturally aspirated engine under full load
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