RRC Stock Screener – Example 13: Rank symbols that are relatively stronger with momentum (“RRC Rank”)

Relative Rotational charts are a powerful tool in assessing how securities compare in terms of their relative strength (RS Ratio) and momentum (RS Momentum), and the RRC Rank function uses these indicators to rank a stock’s relative strength against peers and a benchmark index

5 minutes

This functionality, pertaining to Relative Rotational Charts (RRC), was enhanced in January 2024.

RRC Scan Example #13: Identify and rank relatively stronger symbols driving momentum

Set OptVar IndexNames = NIFTYLMID250, NIFTYSML250, NIFTYMIC250

[BEGIN RRC - IndexNames]

List symbols where 
C > 100 
and VOL > 25000 
and TRADES > 1000 
and (RSRATING(NIFTY) > 75 or RSRATINGST(NIFTY) > 80)

Add Column RSRATIO as RSRAT format 0.0000
Add Column RSMOMENTUM as RSMOM format 0.0000
Add Column RRCRANK as RRCRank
Add Column SECTOR

'Plot Template abc

Set date to "15-Dec-2023"

Apply to IndexNames

[END]

Purpose of the Scan

The purpose of this scan is to identify and rank relatively stronger symbols driving momentum within the NIFTYTOTAL Index.

RS Rating filtering functions are employed to enhance precision.

The methodology involves using the raw input functions of the Relative Rotational Charts (RRC) feature, such as RS Ratio and RS Momentum, to ascertain the RRC Rank.

Let’s go!

Line 1

Set OptVar IndexNames = NIFTYLMID250, NIFTYSML250, NIFTYMIC250

We’re creating an optimized variable named “IndexNames” using the “Set OptVar” function. This variable acts as a placeholder in both the scan heading and the scan itself. It will be replaced with three specific input values: “NIFTYLMID250”, “NIFTYLSML250”, and “NIFTYLMIC250”.

Feel free to choose any term for “IndexNames”, but ensure you replace it globally for the scan to function properly.

Line 2

[BEGIN RRC - IndexNames]

The optimized scan procedure starts with a “BEGIN” command.

Subsequently, the text “RRC – IndexNames” following the “BEGIN” command acts as the specific heading for the scan results presented in the report.

“RRC – IndexNames” is designed to work like this: RRC – NIFTYSML250

Lines 3 through 7

List symbols where
C > 100
and VOL > 25000
and TRADES > 1000
and (RSRATING(NIFTY) > 75 or RSRATINGST(NIFTY) > 80)

The first line (“List symbols where”) instructs the scanning code to display a compilation of stock symbols meeting specific criteria:

  1. Closing price > Rs.100 (“C > 100”)
  2. Daily traded volume > 25,000 (“VOL > 25000”)
  3. Number of daily trades > 1000 (“TRADES > 1000”)
  4. Satisfying either of the two conditions: RS Rating > 75 (“RSRATING(NIFTY) > 75”) or Short-term RS Rating > 80 (“RSRATINGST(NIFTY) > 80”)

The “RSRATING(NIFTY)” function computes the Relative Strength Rating for NIFTYTOTAL stocks, using NIFTY as the benchmark index. Simultaneously, the “RSRATINGST(NIFTY)” function computes the Short-term Relative Strength Rating for NIFTYTOTAL stocks, again based on NIFTY as the benchmark index.

Notably, RS Rating assesses one-year trends, emphasizing recent data akin to the exponential moving average, whereas Short-term RS Rating evaluates trailing quarterly trends.

The “and” function combines multiple conditions, while the “or” function in Line #7 facilitates an either/or scenario. This scan employs a nested “or” condition within a broader “and” condition.

Note: The filters provided are for illustration purposes. If you deem these filters unnecessary, you can execute the scan without these filters.

Lines 8 through 11

Add Column RSRATIO as RSRAT format 0.0000
Add Column RSMOMENTUM as RSMOM format 0.0000
Add Column RRCRANK as RRCRank
Add Column SECTOR

These lines instruct the scan to generate four columns using the “Add Column” function:

  1. Include a column labeled “RSRAT” to showcase the corresponding “RSRATIO” values.
  2. Integrate a column labeled “RSMOM” to exhibit the associated “RSMOMENTUM” values.
  3. Include another column named “RRCRank” to indicate the status of “RRCRANK”.
  4. Introduce a column named “SECTOR” to display the sector of qualifying symbols.

The “format 0.0000” function displays the values with up to 4 decimals.

Feel free to customize these column titles according to your preferences.

The “RSRATIO” function uses the RS-Ratio indicator, a vital component in Relative Rotational charts (RRC). It gauges a symbol’s trend strength relative to a benchmark index, such as the Nifty. A positive RS-Ratio indicates an uptrend and strength, while a negative ratio suggests a downtrend and weakness.

The “RSMOMENTUM” function activates the RS-Momentum indicator, gauging the rate of change in the RS-Ratio indicator. Put simply, it indicates whether the RS-Ratio is strengthening or weakening, serving as a secondary indicator. RS-Momentum fluctuates around the 0 level, moving up and down.

The “RRCRANK” function ranks evaluated stocks by considering both the current RS-Ratio and RS-Momentum indicators.

Line 12

'Plot Template abc

The scan code line is deactivated or commented out, so it won’t be executed by the ChartAlert scanning engine.

However, the “Plot Template” feature improves your charting experience. It lets you easily apply a personalized template when you click on a symbol in the scan results report.

The suggested template in the scan code is named “abc”, but you can name it as you prefer and select any template from your collection.

To create a template within ChartAlert, you can emulate these instructions:

  1. Begin by opening any chart of your choice.
  2. Proceed to plot 50-bar and 200-bar moving averages on the Candlestick chart type.
  3. Then, add the RS-Ratio/ RS-Momentum indicators via an indicator panel.
  4. Also add the RS Rating indicator via another indicator panel.
  5. Finally, save this template as “RRC and RS Rating”, but remember that you are at liberty to select any name that aligns with your requirements.

These steps will ensure a seamless and personalized charting experience in ChartAlert.

Line 13

Set date to "15-Dec-2023"

The “Set date to” function instructs the scan code to execute based on the specified date, which must be entered within double quotes (“”) and in the dd-mmm-yyyy format.

Line 14

Apply to IndexNames

The “Apply to …” function scans the variable “IndexNames”.

This variable, “IndexNames”, is optimized to represent three main segments: “NIFTYLMID250”, “NIFTYLSML250”, and “NIFTYLMIC250”.

To clarify, the scan examines all elements within the NIFTYLMID250, NIFTYSML250, and NIFTYMIC250 Indices.

The NIFTYLMID250 Index combines Nifty and Nifty Next 50 (LargeCaps) with Nifty Midcap 150 (Midcaps).

The NIFTYSML250 Index includes 250 SmallCap stocks, while the NIFTYMIC250 Index comprises 250 MicroCap stocks.

Line 15

[END]

The optimized scan code concludes with an “END” statement.

The Scan Report in ChartAlert

Discover more from ChartAlert®

Subscribe now to keep reading and get access to the full archive.

Continue reading