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).