The RRG Online implementation that we are running on our site here now has a button to switch the graph to full screen. This will help you to increase the use of available screen real-estate to its maximum potential.
As you may know, we have an implementation of RRG-Online on our site for a while already.
This has been and will always be an entry-level implementation with limited universes and limited functionality available. It is meant for people who cannot, or do not want to subscribe to the solutions as they are offered by one of our partners but still want to keep an eye on market rotations in some major universes.
Where can you find it?
The direct link to the new version of RRG-Online is:
If you are already logged into the site, the app will open in a new window. If you are not logged in yet you will see the login page where you will also have the option to create a new account (FREE) so you can try this new version of RRG.
Relative Rotation Graphs slowly came to life while I was working as a sell-side technical analyst for an investment bank in Amsterdam.
My job as an analyst (sell-side) was to cover European equities and equity sectors from a technical perspective and provide the clients of the bank with a technical "view" and generate trade ideas on the basis of that "view". Ultimately the bank would only generate money when the clients would actually put their orders through us and we could earn a commission on the execution of the trade.
As only writing up your view in a report or an email and send it off was not enough to do the trick, every analyst had to communicate his/her view and ideas to the clients by presenting them.
"Relative Strength" or RS is a widely used concept in technical analysis to compare the price performance of one security against the price performance of another security in order to choose which one of the two is to prefer over the other.
The construction of Relative Rotation Graphs is based on a scatter plot. The video at the end of the post shows the rotation through the various stages on the plot, with a short explanation for every stage.
Charly Brown at CB3 Financial group
In this post I want to share a video with you that shows Charles Brown of CB3 Financial group based in Lake Geneva, Wisconsin.
Charly is a fund manager with many years of experience who was an early adopter of Relative Rotation Graphs. In the 2015 MTAEF fund raiser auction, he actually won the bid for a 60 minute phone call with me.
That call, which actually lasted a lot longer than 60 minutes because it was such good fun, was the beginning of an ongoing relationship between CB3 Financial and RRG Research.
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.
The past few months here at RRGTM Research we have been working hard with StockCharts.com staff to implement Relative Rotation GraphsTM into their award winning platform. And I must say we're very impressed with their professionality. They have created a very nice web-based version of RRGTM. All this hard work has now lead to the official launch of RRGsTM on StockCharts.com. Needless to say that it's something we're very proud of.
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 centre. I say 'usually' because the real world' as we all know always throws curve balls at our models. In such an ideal world (for Relative Rotation Graphs) all securities on a RRG would be equal weighted AND they would move perfectly circular AND clockwise through all quadrants AND the benchmark would be positioned exactly in the middle..... That is NOT the case!
Every once in a while I scan the internet to see mentions of RRG or Relative Rotation Graphs.
Allthoug I have set up an alert (google) to receive an email whenever RRG or Relative Rotation Graphs are mentioned somewhere on the web I have noticed that sometimes certain references go unnoticed...
That also happened with an article that was posted on the Business Insider website back in May of this year (2013).