> 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/risk-adjusted-performance/omega-ratio/overview.md).

# Overview

<figure><img src="/files/64rhG6KmYedsXV3RkhYs" alt=""><figcaption></figcaption></figure>

Think of **Omega** as a fairness check: how often—and by how much—your returns beat the bar you’ve set versus how often they fall short.

* **Set your hurdle:** You choose a **Target Return per bar** (e.g., 0.05% daily).
* **Tally each bar:** When a bar clears the hurdle, we count how much it beat it by (“excess gain”); when it misses, we count the shortfall.
* **Roll it up:** Over your chosen window, the indicator compares **total wins vs. total misses**.
  * If wins outweigh misses, **Omega > 1** (quality is favorable).
  * If misses dominate, **Omega < 1** (quality is weak).
* **Choose the lens:** Use **linear returns** for steady markets or **log returns** for larger, jumpy moves and cross-asset comparisons.
* **Read it at a glance:** A gradient line conveys intensity, reference levels at **0.5 / 1.0 / 1.5 / 2.0** frame poor→strong regimes, and built-in alerts ping on crosses of **1.0** to flag shifts in quality.

{% content-ref url="/pages/p5tAQRa5qM6AKmt8SXOX" %}
[Features](/investing/risk-adjusted-performance/omega-ratio/features.md)
{% endcontent-ref %}

{% content-ref url="/pages/2SUbpSvJ5UOjkESBzmWf" %}
[Usage](/investing/risk-adjusted-performance/omega-ratio/usage.md)
{% endcontent-ref %}

{% content-ref url="/pages/3HCalR2P2M2fGzmgagaV" %}
[Confluences](/investing/risk-adjusted-performance/omega-ratio/confluences.md)
{% endcontent-ref %}

{% content-ref url="/pages/kT2tPSrYOg5InjNMOg1p" %}
[FAQs](/investing/risk-adjusted-performance/omega-ratio/faqs.md)
{% endcontent-ref %}

Under the hood, the indicator turns your hurdle into a bar-by-bar test and scores how consistently price clears it.


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