> 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-and-portfolio-management/composite-risk-index/usage.md).

# Usage

Composite Risk Index Usage

The indicator is optimized for high-timeframe charts (Daily, Weekly) to filter out intraday macroeconomic noise.

### Risk-On (Score 0.8 to 2.0)

The macro environment is extremely favorable. Volatility is low, the trend is up, and momentum is positive.

* **Action:** Deploy aggressive trend-following strategies, maintain a long-biased portfolio, and buy structural dips.

### Neutral (Score 0.0 to 0.8)

A transition phase. The market is deciding its next major directional move.

* **Action:** Maintain normal position sizing, but be prepared for a shift. Do not aggressively add to new long positions until a clear trend resumes.

### Risk-Off (Score -1.0 to 0.0)

Volatility is expanding, and momentum is weakening. The structural trend is breaking down.

* **Action:** Tighten stop-losses, reduce portfolio beta, cut underperforming assets, and consider opening delta-neutral hedges.

### Crisis (Score -2.0 to -1.0)

Extreme, unsustainable fear. The chart background will highlight this zone in orange/red.

* **Action:** While terrifying, these zones historically offer generational accumulation opportunities for long-term spot positions. Systematic accumulation (DCA) is highly favored here.


---

# 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-and-portfolio-management/composite-risk-index/usage.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.