⟳ Internal Rotation: South Africa-Related Equities

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Please Note: When Published Intraday (JSE Equities), Prices Are Delayed By 15 Minutes.

A Relative Rotation Graph (RRG) highlights the relative strength and momentum of multiple assets against a common benchmark, plotting them on a single visual grid. By tracking the rotational path of these assets, traders can see exactly which sectors, stocks, or asset classes are leading, lagging, or transitioning at any given time.

How It Helps Traders

• Visualizing Sector Rotation: Traders can watch capital flow out of one sector (Weakening) and into another (Improving) before the shift becomes obvious on standard price charts.

• Pairs Trading: By identifying one asset entering the "Leading" quadrant and another plunging into "Lagging," traders can structure long/short pairs trades with a clear statistical divergence.

• Momentum Velocity: The "tails" trailing behind each asset on an RRG show trajectory and speed. Longer, widely spaced dots on a tail indicate rapid, violent momentum shifts, while tightly clustered dots suggest consolidation.

• Macro Condensation: Instead of flipping through dozens of isolated price charts and moving averages, an RRG condenses the entire market's relative performance into a single, actionable snapshot.

Lester Davids

Senior Investment Analyst: Unum Capital