Technical Analysis

Related commands

How it works

What is RSI (Relative Strength Index)?

RSI is a momentum oscillator that measures the speed and magnitude of recent price changes. Values above 70 indicate overbought conditions; values below 30 indicate oversold. Developed by J. Welles Wilder, it is one of the most widely used technical indicators in equity analysis.

What is MACD (Moving Average Convergence Divergence)?

MACD is a trend-following momentum indicator computed from the difference between a 12-period and 26-period exponential moving average. The MACD line crossing above the signal line is typically interpreted as a bullish signal. The histogram shows the rate of change of the difference.

What is VWAP?

VWAP (Volume-Weighted Average Price) is calculated as the total value of shares traded divided by total volume. It is used by institutional traders as a benchmark for execution quality. Price trading above VWAP intraday is considered a bullish signal.

What is the Sharpe Ratio?

The Sharpe ratio is the average return earned in excess of the risk-free rate per unit of volatility. It is the most widely used measure of risk-adjusted performance. A Sharpe ratio above 1.0 is generally considered acceptable; above 2.0 is considered excellent.

What is the Sortino Ratio?

The Sortino ratio is a variation of the Sharpe ratio that only penalizes downside volatility — it uses the standard deviation of negative returns. This makes it more appropriate for strategies with asymmetric return profiles.

What is CAGR?

CAGR (Compound Annual Growth Rate) is the annualized rate at which an investment grows over a period of time, assuming profits are reinvested. It smooths out volatility and gives a single representative annual return figure.

Frequently Asked Questions

What does the Talos analyze command show?

The analyze command returns RSI, MACD, VWAP, Sharpe ratio, Sortino ratio, CAGR, and bull/bear scenarios for a stock — all computed from recent price data.

What is RSI and why does it matter?

RSI (Relative Strength Index) is a momentum oscillator ranging 0–100. Readings above 70 suggest overbought conditions; below 30 suggest oversold. It helps identify potential reversal points.

What is MACD in stock analysis?

MACD (Moving Average Convergence Divergence) uses the difference between a 12-day and 26-day EMA to identify trend direction and momentum shifts. A MACD line crossing above the signal line is a bullish signal.

What is the Sharpe ratio?

The Sharpe ratio measures risk-adjusted return — how much excess return you receive per unit of total risk. Higher values indicate better risk-adjusted performance.

What is VWAP used for?

VWAP (Volume-Weighted Average Price) is the ratio of total value traded to total volume. Institutional traders use it as a benchmark; price above VWAP is considered bullish intraday.

What is Talos?

Talos is a natural-language market intelligence terminal. You type commands like 'Analyze NVDA' or 'Optimize AAPL MSFT' and Talos runs quantitative and AI-powered analysis instantly.

Is Talos free to use?

Talos is free to access. Simply visit https://stochastics.vercel.app/ and start typing commands in the terminal.