# High-Wave Candle

`D06-F02-A12` · Price Action and Candlesticks → Single-Candle Patterns · archetype `record-transform` · difficulty 2/5 · verification **verified**

Full page: https://docs.thefintechbuilder.com/price-action-and-candlesticks/single-candle-patterns/high-wave-candle/
Agent skill: `npx skills add IslamBaraka90/Fintech-Algorithms-Library` — https://docs.thefintechbuilder.com/guides/agent-skill/

## Install and import

```bash
npm install fintech-algorithms
```

```ts
import { highWaveCandle } from "fintech-algorithms/price-action-and-candlesticks/single-candle-patterns/high-wave-candle";
```

## Signature

```ts
highWaveCandle(input)
```

Marks each bar with a small body relative to its high-low span whose two shadows are both a multiple of that body, the long-tailed indecision candle.

## Parameters

| Name | Type | Required | Notes |
| --- | --- | --- | --- |
| `input` | `TopicInput` | yes | `bars` is a chronologically ordered array of OHLCV rows; each needs a non-empty `timestamp` strictly greater than the previous row's and finite `open`, `high`, `low`, `close` and `volume`. The single-candle family validates `body_ratio` (default 0.05, within 0..1), `shadow_ratio` (default 0.35), `shadow_body_multiple` (default 2, at least 0) and `tick_tolerance` (default 0.01) on every call. This topic reads `body_ratio` as the largest body share of the span it will accept and `shadow_body_multiple` as how many bodies long each shadow must be; a zero body satisfies the shadow test outright. |

## Returns

`TopicResult`

`series.label` is `"neutral"` on a matching bar and `"none"` otherwise. `series.score` is `body_ratio` minus the body share of the span, so it reports headroom on the body test alone and can be at or above zero on a bar the shadow test rejected. `latest` carries the last value of each. There is no warm-up: both series are populated from the first bar, so `ready_at` is 0.

## Warm-up

The first `0 bars` positions are `null`. Per-bar geometry with no smoothing state, so `ready_at` is 0. On a flat bar where `high` equals `low` the positive-span guard leaves `score` null and `label` at `"none"`, which is a real verdict rather than a warm-up placeholder.

## Errors

- When a bar has a non-finite price or volume, a negative volume, a `high` below its own open/low/close, a `low` above them, or a `timestamp` that does not advance — throws Error
- When `body_ratio` is not a finite number or falls outside 0..1, or `shadow_body_multiple` is not a finite number or is negative — throws Error
- When `input` is not an object, `input.parameters` is not an object, or `bars` is not an array holding at least one bar — throws Error

## Complexity

Time `O(n)`, space `O(n)`.

## Worked example

Captured by running this function on the input its own test provides. Real output of real code — but not asserted against a published figure.

### Input

`input`:

```json
{
  "bars": [
    {
      "timestamp": "2024-01-02",
      "basis": "synthetic-unadjusted",
      "open": 100,
      "high": 101.45,
      "low": 98.695,
      "close": 100,
      "volume": 750000,
      "benchmark": 200
    },
    {
      "timestamp": "2024-01-03",
      "basis": "synthetic-unadjusted",
      "open": 101.49111452,
      "high": 103.38381693,
      "low": 100.05480022,
      "close": 101.78791214,
      "volume": 795117,
      "benchmark": 200.56326135
    },
    {
      "timestamp": "2024-01-04",
      "basis": "synthetic-unadjusted",
      "open": 102.45519048,
      "high": 104.6701838,
      "low": 100.91147007,
      "close": 102.9549389,
      "volume": 840234,
      "benchmark": 201.11020913
    }
  ],
  "parameters": {}
}
```

### Call

```ts
highWaveCandle(input)
```

### Returns

object with 9 fields: topic_id, title, state, ready, ready_at, series, latest, parameters, …

```json
{
  "topic_id": "D06-F02-A12",
  "title": "High-Wave Candle",
  "state": "calculated",
  "ready": true,
  "ready_at": 0,
  "series": {
    "label": ["neutral", "none", "none", "none", "none", "neutral"],
    "score": [
      0.05,
      -0.03915474022958794,
      -0.08295729760191171,
      -0.08829149989844472,
      -0.0589777590581788,
      0.0044297342216514934
    ]
  },
  "latest": {
    "label": "none",
    "score": -0.06921211954649767
  },
  "parameters": {},
  "diagnostics": {
    "causal": true,
    "input_count": 96
  }
}
```

## Verification and provenance

Tier: **verified** (via E).

The worked example below is the figure published in this algorithm's article, replayed and asserted by the test suite on every build. The arithmetic cannot drift without the build failing.

Both tiers guarantee the signature. Full explanation: https://docs.thefintechbuilder.com/guides/verification/

Generated from the docs.json payload shipped inside fintech-algorithms@0.13.0.
The signature and parameter list are checked against the compiled implementation at build time,
so a description that contradicts the code fails the build rather than reaching this file.

## Links

- Article (how it works, step by step): https://thefintechbuilder.com/price-action-and-candlesticks/single-candle-patterns/high-wave-candle/
- Implementation source: https://github.com/IslamBaraka90/Fintech-Algorithms-Library/blob/main/src/price-action-and-candlesticks/single-candle-patterns/high-wave-candle/impl.ts
- Package on npm: https://www.npmjs.com/package/fintech-algorithms
- Domain index for agents: https://docs.thefintechbuilder.com/price-action-and-candlesticks/llms.txt