I recently wrote an article on my StockCharts.com blog which explains how to fill a Relative Rotation Graph with the members of a specific sector in order to do a deeper analysis on the rotation of individual stocks within that sector.
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I recently wrote an article on my StockCharts.com blog which explains how to fill a Relative Rotation Graph with the members of a specific sector in order to do a deeper analysis on the rotation of individual stocks within that sector.
Last week my eye fell on a tweet by Corey Hofstein of Newfound Research. Behind the link I found a thorough piece of research on the evolution of momentum in financial markets. He even threw in a Relative Rotation Graph (maybe that's why I liked the article so much :)
It's a pretty long article but well worth your time on this Saturday (morning for me) while you're having your Latte! You may need a venti, but it's the weekend so that's allowed!
As of last Saturday 19 July 2014 StockCharts.com launched Relative Rotation Graphs as part of their web-based charting services.
When studying relative strength and sector rotation by using Relative Rotation Graphs it is usually clearly visible that all the elements on the plot are more or less evenly spread around the benchmark (positioned) in the center.