FTB-C000289 / Financial concept

Neutral Candle

Neutral Candle is a candle whose open-to-close difference falls inside a declared neutral tolerance.

Also known asflat candle

Foundation 1 linked topicPublished

Definitions

In plain terms

It separates near-equality from bullish and bearish bodies when market precision makes exact equality too strict.

Technical

The rule freezes absolute or scale-relative tolerance, tick size, rounding, price basis, and inclusivity.

Scope

Neutral does not mean that no trading or intrabar movement occurred.

Examples

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

Common misconceptions

  • Neutral does not mean that no trading or intrabar movement occurred.

Concept relationships

Prerequisites

Related

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. TA-Lib Global Candle Settings TA-Lib · first party technical publication

    Supports: preferred label, short definition, technical definition

    Limits: TA-Lib defaults are library conventions and do not establish universal definitions for small or large candle bodies.

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.