RRC Stock Screener – Example 3: Were weak but are now strong; have maintained RS and RM for ‘n’ bars

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

6 minutes

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


RRC Scan Example #3:
Look for stocks that were weak but have recently become strong, and have maintained this relative strength and relative momentum for “n” time period

List symbols where 
RSRATIO 3 bars ago has crossed above 0 
AND RSMomentum > 0 for 4 bars
AND RSRatio > 0 for 4 bars

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 that were weak but have recently become strong (RSRATIO has crossed above 0, three bars ago), and they must have maintained this relative strength and relative momentum for at least the last four time intervals.

An RSRATIO and RSMOMENTUM above 0 indicates an uptrend, signifying relative strength and positive momentum.

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

It’s a way to find potentially promising stocks for investment or further analysis on the NSE.



Lines 1 through 4

List symbols where 
RSRATIO 3 bars ago has crossed above 0 
AND RSMomentum > 0 for 4 bars
AND RSRatio > 0 for 4 bars

Imagine we are looking at a line chart that shows the performance of a stock over time, and we are trying to find stocks (“List symbols where …“) that have met certain conditions.

RSRATIO” is a measure of how relatively strong or weak a stock has been compared to the underlying benchmark Index, and “3 bars ago” means looking at the value of “RSRATIO” three time intervals ago, and “has crossed above 0” means that “RSRATIO” was below 0, and now it has gone up and crossed the zero line.

So, this part of the scan code finds stocks where their “RSRATIO” was weak (below zero) and has recently become strong (crossed above zero) three time intervals ago.

RSMomentum” is another relative measure of how well a stock is doing; “RSMomentum > 0” means that the momentum is positive, which suggests the stock is doing well, and “for 4 bars” means that this positive momentum has been maintained for four consecutive time intervals.

So, this part of the scan code ensures that the stock has had positive relative momentum for the past four time intervals.

Similar to the previous condition, this part (“AND RSRatio > 0“) checks that the “RSRATIO” is also positive (indicating strength) for the past four time intervals (“for 4 bars“).


Line 5

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.


Line 6

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.



Line 7

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.


Line 8

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 9

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 10

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 11

Apply to NSE

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


The Scan Report in ChartAlert

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