Classroom / Module 6: RRG Analysis with StockCharts
Module 6: RRG Analysis with StockCharts
Some stocks rise while the whole market rises, and some rise faster than everything around them. This module teaches you a colourful map called a Relative Rotation Graph, or RRG, that shows which parts of the market are gaining strength and which are losing it. You will learn to read it on StockCharts.com, and you will learn where it can fool you.
- Relative strength: beating the benchmark, not just rising - why going up is not enough; a stock has to beat the market to be truly strong.
- What an RRG is: the four quadrants in plain words - the map with four zones, and what each zone says about a stock or sector.
- Reading rotations: leading, weakening, lagging, improving - how stocks travel clockwise through the zones, and how to follow their trails.
- RRG with single stocks - plotting Apple and its giant neighbours against the S&P 500, and why single stocks are jumpier than sectors.
- RRG plus fundamentals: rotation tells you when, filings tell you what - combining the map with SEC filings so you never act on a pretty picture alone.
- When RRG misleads: limits and false rotations - the honest chapter: where this tool fails, and how to protect yourself.
StockAnalysis.com links in this module carry The Microcap Minute’s referral code. Nothing in this module is investment advice or a recommendation.