> For the complete documentation index, see [llms.txt](https://docs.candelacharts.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.candelacharts.com/investing/macro-and-liquidity/macro-credit-model/faqs.md).
# FAQs
What does the "Calculate Excess Spread" setting do?
When enabled (default), the indicator subtracts the Investment Grade spread from the High Yield spread. This isolates the pure "credit risk premium" of junk bonds while stripping out baseline corporate interest rate effects, providing a cleaner signal of systemic stress.
Why do I see an error or no data on lower timeframes?
The underlying data is sourced from the Federal Reserve Economic Data (FRED) database, which only publishes these specific bond spreads on a daily basis. The indicator will only work on the Daily (1D), Weekly (1W), or Monthly (1M) charts.
What is a Z-Score and why use it instead of the raw spread?
A Z-Score measures how many standard deviations the current spread is from its historical average. A raw spread of 500 basis points might be "normal" in 2009 but "terrifying" in 2018. The Z-Score normalizes the data, making sure the signal is relative to the current market regime.
How do I trade the "Stress" signals?
A "Stress" signal (Z-Score > 2.0) is not necessarily a signal to short immediately, but rather a structural mandate to de-risk. It tells you to tighten stop losses, reduce position sizing, and avoid buying dips until credit markets stabilize.
Why is the "Low Risk Zone" colored Teal?
When credit spreads are low (negative Z-Score), it means borrowing is cheap and credit is flowing freely. This is a highly supportive, bullish environment for stocks, so it is colored Teal to signify a "Risk-On" environment.
---
# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.
## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.
Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter:
```
GET https://docs.candelacharts.com/investing/macro-and-liquidity/macro-credit-model/faqs.md?ask=&goal=
```
`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.
Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.