First off, you need to wipe the dipstick before you actually read the oil level, ie, pull it out, wipe the oil off, replace it, and pull it out and read.
The oil higher up the dipstick is probably from splash, that's why you need to wipe first. Also, before you measure the level, make sure all the oil has drained back to the sump - leave the engine off for a few minutes to ensure all the oil drains back.