> 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/tail-ratio.md). # Tail Ratio The **CandelaCharts - Tail Ratio** is a statistical oscillator designed to measure the skewness (asymmetry) of an asset's returns. By analyzing the shape of the return distribution, it provides deep insights into the probabilistic nature of price movements, moving beyond standard momentum or trend indicators. While typical indicators focus on average prices or simple volatility, the Tail Ratio specifically examines the "tails" of the distribution—the extreme positive and negative returns. This allows traders and investors to understand the market's hidden bias: whether the asset is more prone to outsized upside explosive moves (positive skew) or sudden downside shocks (negative skew). --- # 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/risk-adjusted-performance/tail-ratio.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.