Rajandran R Founder of Marketcalls and Co-Founder Algomojo. Full-Time Derivative Trader. Expert in Designing Trading Systems (Amibroker, Ninjatrader, Metatrader, Python, Pinescript). Trading the markets since 2006. Mentoring Traders on Trading System Designing, Market Profile, Orderflow and Trade Automation.

RRG – Relative Rotation Graph Explained

49 sec read

Relative Rotation Graph (RRG) is a proprietery visualization tool to study and analyze trend in stocks/index with respect to the benchmark index. RRG is developed by Julius de Kempenaer (RRG Research) during 2004-2005. Currently the study is available in Stockcharts, Bloomberg (Since 2011) and Market Analyst 7. RRG generally favors investors to invest in strong sectors with good amount of momentum, Cycle Analysis in Stocks with respect to bench mark index.

RRG

RRG is not a timebased chart but a scatter plot based chart with four quadrants and the pack of stocks moves from one quadrant to another quandrant in a clockwise cyclical fashion. It plays a major role in cycle analysis and picking the strong stocks with good momentum and understanding a lot about sector based study and multiple cross country indices with respect to benchmark index.

Done a short video tutorial to understand Relative Rotational Graph in a better manner.

httpv://www.youtube.com/watch?v=OAUOcHYG_Jc

 
Four quadrants are represented as follows

Leading (Green) – strong relative strength and strong momentum
Weakening (Yellow) – strong relative strength but weakening momentum
Lagging (Red) – weak relative strength and weak momentum
Improving (Blue) – weak relative strength but improving momentum

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Rajandran R Founder of Marketcalls and Co-Founder Algomojo. Full-Time Derivative Trader. Expert in Designing Trading Systems (Amibroker, Ninjatrader, Metatrader, Python, Pinescript). Trading the markets since 2006. Mentoring Traders on Trading System Designing, Market Profile, Orderflow and Trade Automation.

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2 Replies to “RRG – Relative Rotation Graph Explained”

  1. as part of summer internship project on Relative rotation graph we need formula for JDK-RS momentum … from where do we get that formula ???

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