BIG Professional Relative Rotation Graph

PROFESSIONAL RELATIVE ROTATION GRAPH (RRG)

SUMMARY

The Professional Relative Rotation Graph (RRG) is a powerful charting tool that visualizes the **relative strength** and **momentum** of multiple assets (currencies, commodities, or sectors) compared to a benchmark on a single quadrant chart. This overlay is discreetly displayed in the top-left corner of your chart, enabling a fast, visual assessment of market and sector trends.

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HOW THE RRG WORKS

The RRG uses two key metrics:

1. Relative Strength (RS-Ratio): Measures an asset's long-term performance relative to the benchmark (X-Axis). Values above 100 indicate outperformance.
2. Relative Momentum (RS-Momentum): Measures the short-term rate of change in relative strength (Y-Axis). Values above 100 indicate rising momentum.

THE FOUR QUADRANTS

The asset's position shows its current market phase.

* LEADING: Outperforming in strength and rising momentum (Bullish).
* WEAKENING: Outperforming in strength, but falling momentum (Caution).
* LAGGING: Underperforming in strength and falling momentum (Bearish).
* IMPROVING: Underperforming in strength, but rising momentum (Recovery).

AREAS OF APPLICATION

Select the desired RRG Type via the inputs:

* Forex RRG: Compares currencies relative to the DXY.
* Commodity RRG: Compares commodities relative to the DJP.
* Equity Sectors RRG: Compares US sectors relative to the SPY.

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USAGE NOTES (MAX 8 LINES)

The RRG tracks rotation of assets through the quadrants.

1. Ideal Entry: Look for the rotation: Lagging → Improving → Leading.
2. Ideal Exit/Short: Look for the rotation: Leading → Weakening → Lagging.
3. Positions are always relative to the benchmark (DXY, SPY, or DJP).
4. The RRG Type input switches between asset groups.
5. Use Zoom Factor to better distinguish closely clustered assets.
6. Trail Points confirm the current direction of the asset's movement.