FTB-C000286 / Formula component

Candle Direction

Candle Direction classifies the real body by the sign of close minus open.

Also known asbody direction

Foundation Formula defined 1 linked topicPublished

Definitions

In plain terms

A positive value is bullish, a negative value bearish, and a zero or tolerance-level value neutral under the declared rule.

Technical

The implementation must freeze strictness, equality tolerance, tick size, rounding, and finalization state.

Scope

Direction says nothing about the size of the body or the next bar.

Formula

Direction = sign(C - O)
LaTeX: d=\operatorname{sign}(C-O)
SymbolMeaningUnit
Cbar close priceprice
Obar open priceprice

Output unit: direction class

Examples

  • A governed lesson uses Candle Direction only with declared inputs, timing, parameters, and edge-case behavior.

Common misconceptions

  • Direction says nothing about the size of the body or the next bar.

Concept relationships

Prerequisites

Related

Required by

Where this concept is used

Tutorials planned

These catalogued topics use this concept, but their complete build has not shipped yet.

  • D06-F01-A01 Important

Evidence and governance

  1. Candlestick Chart Nasdaq · official exchange

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

    Limits: The short glossary entry does not define bar aggregation, data corrections, thresholds, or pattern-detection rules.

  2. Candlestick Chart Nasdaq · official exchange

    Supports: variant distinction

    Limits: The short glossary entry does not define bar aggregation, data corrections, thresholds, or pattern-detection rules.

Reviewed by
fintech-builder-batch-006
Last reviewed
2026-07-27
Next review
2027-07-27
Record status
published
Written by

Fintech engineer building market-data and financial systems, and the author of every article, glossary record, and reference implementation on The Fintech Builder.