Interactive Relative Rotation Graph (RRG) for Nifty & Indian Sectors
What is a Relative Rotation Graph (RRG)?
A Relative Rotation Graph (RRG) is a unique visualization framework created by Julius de Kempenaer. It plots the relative performance of a universe of assets (such as industry sectors) against a benchmark index.
The graph is split into four distinct quadrants that represent different stages of relative strength and relative momentum:
- 🟢 Leading (Top Right): Strong relative strength and positive momentum. Outperforming the benchmark.
- 🟡 Weakening (Bottom Right): Strong relative strength but losing momentum. Potentially peaking.
- 🔴 Lagging (Bottom Left): Weak relative strength and negative momentum. Underperforming.
- 🔵 Improving (Top Left): Weak relative strength but building momentum. Potential upcoming leaders.
Using RRG to Trade the Indian Market
By observing the clockwise rotation of sectors through the quadrants, swing traders can determine the general money flow inside the Nifty 500 index.
Typically, traders look to enter long setups when a sector enters the Improving quadrant or stays strong in Leading, while exiting or shorting assets moving into Weakening and Lagging.
SectorLens calculates these metrics daily using end-of-day data to ensure accurate positioning. View our Sectors Leaderboard for detailed raw tables.
