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)d=\operatorname{sign}(C-O)| Symbol | Meaning | Unit |
|---|---|---|
C | bar close price | price |
O | bar open price | price |
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
Required by
Where this concept is used
Evidence and governance
- 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.
- 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.