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Guide

Relative rotation graph

A relative rotation graph plots each sector's strength against a benchmark and whether that strength is speeding up or slowing down.

A relative rotation graph, usually called an RRG, is a scatter plot of relative strength. Each point is one sector, country, stock, or coin. The horizontal position is how strong it has been versus a benchmark. The vertical position is whether that strength is rising or fading.

JdK-style charts often put both axes through 100. This site uses the Kaufman version that was run on weekly Nifty data: strength is normalized so the benchmark sits at 100, and speed is normalized so zero means "not speeding up and not slowing down." The crosshair is therefore 100 across and 0 up.

The tail is the recent path of that point. On the default setting you see eight readings. Press play and the points walk forward through older weeks, which is the useful part: you see rotation instead of a ranking.

The graph is only as good as the universe you give it. Sector indexes answer "which group." A custom list of stocks answers "which names inside a market," and those names are still measured against the benchmark you picked. Mixing a stock with the sector index that contains it is allowed, but then read the labels, because the stock is inside the sector.

Related pages: how to read an RRG chart, the four quadrants, and the calculation.