> 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/confluences.md). # Confluences The Tail Ratio is a powerful context tool that pairs exceptionally well with traditional directional indicators. * **Trend Following**: Use the Tail Ratio to validate trend strength. A strong uptrend accompanied by a Right-tailed (Positive Skew) reading suggests the trend is supported by robust upside momentum and is structurally sound. * **Mean Reversion / Reversals**: Look for divergences. If price is making new highs but the Tail Ratio shifts to a Left-tailed (Negative Skew) regime, it warns that underlying downside risk is building, potentially signaling an impending reversal. * **Volatility Breakouts**: When price breaks out of a consolidation range, a corresponding surge in the Tail Ratio can confirm the direction of the breakout has strong structural backing. --- # 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/confluences.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.