Definitions
In plain terms
It records how far price traded below both the open and close during the interval.
Technical
Calculate min(O,C)-L only after validating OHLC consistency and the bar's price basis.
Scope
A long lower shadow is descriptive and is not by itself a bullish signal.
Formula
Lower shadow = min(O, C) - LD=\min(O,C)-L| Symbol | Meaning | Unit |
|---|---|---|
L | bar low price | price |
O | bar open price | price |
C | bar close price | price |
Output unit: price
Examples
- A governed lesson uses Lower Shadow only with declared inputs, timing, parameters, and edge-case behavior.
Common misconceptions
- A long lower shadow is descriptive and is not by itself a bullish signal.
Concept relationships
Prerequisites
Related
Where this concept is used
Evidence and governance
- Chart Types: Candlestick, Line, and Bar CME Group · official exchange
Supports: preferred label, short definition, technical definition, formula
Limits: Display colors and pattern interpretations are conventions rather than universal predictive rules.
- 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
- 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.