> 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/overview.md).

# Overview

<figure><img src="/files/NHqNaa7kCTii5fHwfxnJ" alt=""><figcaption></figcaption></figure>

The Tail Ratio compares the magnitude of extreme positive returns (the right tail) to the magnitude of extreme negative returns (the left tail) over a specified lookback period.

{% content-ref url="/pages/Kq17PoRX4mFoani7eE9f" %}
[Features](/investing/risk-adjusted-performance/tail-ratio/features.md)
{% endcontent-ref %}

{% content-ref url="/pages/Hur0ajBS3g4mz5iKjbjT" %}
[Usage](/investing/risk-adjusted-performance/tail-ratio/usage.md)
{% endcontent-ref %}

{% content-ref url="/pages/8KgtpTPYGlzGDfUHV0R2" %}
[Confluences](/investing/risk-adjusted-performance/tail-ratio/confluences.md)
{% endcontent-ref %}

{% content-ref url="/pages/ZBIzwdDjJVc5Xx9vmkcD" %}
[FAQs](/investing/risk-adjusted-performance/tail-ratio/faqs.md)
{% endcontent-ref %}

Instead of treating all volatility as equal, the indicator parses out the direction of the extremes. When the ratio is high, it indicates that the asset's largest gains are significantly larger than its largest losses. Conversely, a low ratio indicates that the asset's largest losses are overpowering its gains. By visualizing this ratio, you can easily determine the underlying structural bias of the current market 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/risk-adjusted-performance/tail-ratio/overview.md?ask=<question>&goal=<endgoal>
```

`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.