RRC Stock Screener – Example 1: Positive change in RSRATIO ‘n’ bars ago

Sectoral Rotation, or Relative Rotational charts, are a powerful visual tool in assessing how different sectors compare in terms of their relative strength and momentum; it’s easier to spot stronger and weaker sectors, thus highlighting possible changes in market leadership and trends in asset performance

5 minutes

This functionality, pertaining to Relative Rotational Charts (RRC), was introduced in October 2023.

RRC Scan Example #1:
Look for stocks that had a positive change in their RSRATIO three bars ago

List symbols where 
RSRATIO 3 bars ago has crossed above 0

Add Column RSRATIO as RSR
Add Column RSMOMENTUM as RSM
Add Column RRCSTATUS as Status
Add Column RRCSTATUS a bar ago as PvsStatus
Add Column RRCQUADRANT as Quad chart
Add Column RRCQUADRANT a bar ago as QuadYest chart

Apply to NSE

Purpose of the Scan

The purpose of this scan is to look for stocks listed on the NSE that had a positive change in their RSRATIO three bars ago.

An RSRATIO above 0 indicates an uptrend, signifying strength.

These are “outperforming” stocks (relative to the underlying benchmark, like NIFTY), and they reside in the Q2 (labeled as LEADERS) or Q3 (labeled as WEAKENING MOMENTUM) quadrants.

The scan also extracts, organizes and compares various data columns for further analysis, including RSRATIO, RSMOMENTUM, RRCSTATUS, and RRCQUADRANT.

Below is a breakdown of the scan presented in a step-by-step manner.

Let’s go!

Lines 1 and 2

List symbols where 
RSRATIO 3 bars ago has crossed above 0

This part of the scan looks for stock symbols (“List symbols where …“) where the function “RSRATIO” has crossed from below the value of 0 to above it (“has crossed above 0“) three bars ago (“3 bars ago“).

In simpler terms, it’s looking for stocks that had a positive shift in their RSRATIO three bars ago.

Line 3

Add Column RSRATIO as RSR

This line instructs the scan to create a column (“Add Column“) called “RSR” and list the values of the “RSRATIO” function into it. This is done to make it easier to work with the RSRATIO data.

The column title “RSR” can be modified or personalized to your preference.

What is “RSRATIO”?

The “RS-Ratio” indicator is a crucial input used in Relative Rotational charts (RRC).

It’s a valuable tool for assessing how strong or weak a symbol’s trend is compared to a benchmark index, like the Nifty.

If the RS-Ratio is above 0, it means the symbol is in an uptrend and is showing strength. If the ratio is below 0, it suggests a downtrend and indicates weakness.

Line 4

Add Column RSMOMENTUM as RSM

Similarly, this line creates a column (“Add Column“) called “RSM” and copies the values of the “RSMOMENTUM” function into it. Again, it’s for convenience and analysis.

The column title “RSM” can be modified or personalized to your preference.

What is “RSMOMENTUM”?

The “RS-Momentum” indicator, which is used in Relative Rotational charts (RRC), helps us understand how quickly the RS-Ratio indicator is changing.

In simpler terms, it tells us if the RS-Ratio is gaining or losing strength. Think of it as a kind of indicator for the main indicator.

The RS-Momentum moves up and down, oscillating around the 0 level.

Line 5

Add Column RRCSTATUS as Status

Here, a new column called “Status” is added (“Add Column“), and it contains information related to the stocks’ status or condition (“RRCSTATUS“) in the context of a Relative Rotational chart’s (RRC) scatter plot.

The column title “Status” can be modified or personalized to your preference.

What is “RRCSTATUS”?

Relative Rotational charts (RRC) are a visual tool for comparing how strong and fast a symbol is performing.

These charts have two lines, one going left to right (horizontal X-axis; the RS-Ratio) and one going up and down (vertical Y-axis; the RS-Momentum).

Where these lines cross at a point marked ‘0’ divides the chart into four quadrants.

Starting from the top right and going clockwise, these quadrants are labeled as “LEADERS,” “WEAKENING,” “LAGGARDS,” and “IMPROVING.”

The “RRCSTATUS” function helps us figure out which quadrants a symbol falls into on the chart, and it gives us one of these labels like “LEADERS” or “LAGGARDS” to describe its position.

Line 6

Add Column RRCSTATUS a bar ago as PvsStatus

This line creates another column (“Add Column“) called “PvsStatus” and lists values of the “RRCSTATUS” function from one bar ago (“a bar ago“) into it. It helps in comparing the current status with its previous status.

The column title “PvsStatus” can be modified or personalized to your preference.

Line 7

Add Column RRCQUADRANT as Quad chart

A new column named “Quad” is created (“Add Column“), and it contains information related to the stocks’ status or condition (“RRCQUADRANT“).

The “RRCQUADRANT” function helps us figure out which quadrant a symbol falls into on the Relative Rotational chart (RRC), and it gives us one of the labels like “Q2” (which is the same as LEADERS) or “Q4” (which is the same as LAGGARDS) to describe its position.

The function “chart” allows the RS-RATIO and RS-MOMENTUM indicators to be plotted an the chart should you open a symbol’s chart from within the scan results report.

The column title “Quad” can be modified or personalized to your preference.

Line 8

Add Column RRCQUADRANT a bar ago as QuadYest chart

This one creates a column (“Add Column“) called “QuadYest” and displays values of the “RRCQUADRANT” function from one bar ago (“a bar ago“) into it. This allows for comparisons between the current quadrant and the one from the previous bar.

The function “chart” allows the RS-RATIO and RS-MOMENTUM indicators to be plotted an the chart should you open a symbol’s chart from within the scan results report.

The column title “QuadYest” can be modified or personalized to your preference.

Line 9

Apply to NSE

Finally, the “Apply to …” function specifies the scan to be applied to all spot or cash stocks that are listed on the National Stock Exchange (“NSE“).

The Scan Report in ChartAlert

%d