FTB-C000283 / Formula component

Upper Shadow

Upper Shadow is the candlestick segment from the top of the real body to the bar high.

Also known asupper wick

Foundation Formula defined 1 linked topicPublished

Definitions

In plain terms

It records how far price traded above both the open and close during the interval.

Technical

Calculate H-max(O,C) only after validating OHLC consistency and the bar's price basis.

Scope

A long upper shadow is descriptive and is not by itself a reversal signal.

Formula

Upper shadow = H - max(O, C)
LaTeX: U=H-\max(O,C)
SymbolMeaningUnit
Hbar high priceprice
Obar open priceprice
Cbar close priceprice

Output unit: price

Examples

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

Common misconceptions

  • A long upper shadow is descriptive and is not by itself a reversal signal.

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. 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.

  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.