Relative Rotation Graph (RRG)

A REST API that computes Relative Rotation Graphs for Indian and global markets — identifying sector rotation and stock momentum relative to a benchmark.

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What is an RRG?

A Relative Rotation Graph is a visualization tool used in technical analysis to compare the relative strength and momentum of multiple securities against a single benchmark (e.g. Nifty 50).

Each security is plotted on a 2D chart across four quadrants:

          RS-Momentum (Y-axis)
               ▲
               │
  IMPROVING    │    LEADING
  (Early opp.) │  (Best zone)
               │
  ─────────────┼────────────── RS-Ratio (X-axis)
               │        100
  LAGGING      │    WEAKENING
  (Avoid)      │  (Watch exit)
               │

Quadrant	RS-Ratio	RS-Momentum	Meaning
Leading	> 100	> 100	Outperforming, momentum rising. Best zone.
Weakening	> 100	< 100	Outperforming, but momentum fading.
Lagging	< 100	< 100	Underperforming, momentum declining. Avoid.
Improving	< 100	> 100	Underperforming, but momentum picking up. Early entry.

Securities typically rotate clockwise: Leading → Weakening → Lagging → Improving → Leading

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Tech Stack

Layer	Technology
Language	Python 3.9+
Framework	FastAPI
Data	yfinance (Yahoo Finance)
Analysis	Pandas, NumPy
Visualization	Plotly
Server	Uvicorn
Validation	Pydantic v2

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Project Structure

Relative-Rotation-Graph/
├── app/
│   ├── main.py                  # FastAPI app + middleware
│   ├── routers/
│   │   └── rrg.py               # API endpoints
│   ├── services/
│   │   ├── data_service.py      # yfinance data fetching
│   │   └── rrg_service.py       # JdK RS-Ratio & RS-Momentum calculation
│   └── models/
│       └── schemas.py           # Pydantic request/response models
├── requirements.txt
├── .env.example
├── .gitignore
└── README.md

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API Reference

Base URL: http://localhost:8000

POST /rrg/compute

Compute RRG for any list of symbols vs a benchmark.

Request:

{
  "symbols": ["RELIANCE.NS", "TCS.NS", "HDFCBANK.NS", "INFY.NS"],
  "benchmark": "^NSEI",
  "period": "1y",
  "tail_length": 5
}

Response:

{
  "benchmark": "^NSEI",
  "generated_at": "2026-04-18T10:00:00",
  "securities": [
    {
      "symbol": "RELIANCE.NS",
      "quadrant": "Leading",
      "current_rs_ratio": 102.45,
      "current_rs_momentum": 101.12,
      "tail": [
        { "date": "2026-04-11", "rs_ratio": 101.80, "rs_momentum": 100.90 },
        { "date": "2026-04-18", "rs_ratio": 102.45, "rs_momentum": 101.12 }
      ]
    }
  ]
}

POST /rrg/sectors/india

Pre-built RRG for all Nifty sector indices vs Nifty 50. No input needed.

Query params:

• period (default: 1y)
• tail_length (default: 5)

Sectors included: Nifty Bank, IT, Auto, Pharma, FMCG, Metal, Realty, Energy, Infra, Media

GET /rrg/quadrants

Returns quadrant definitions and rotation explanation.

GET /health

Health check endpoint.

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How the Calculation Works

1. RS-Ratio (Relative Strength)

Measures how strongly a security is performing vs the benchmark.

Relative  = (Symbol Price / Benchmark Price) × 100
RS-Ratio  = Smoothed(Relative) / Smoothed(Relative, longer period) × 100

• Value > 100 → outperforming the benchmark
• Value < 100 → underperforming the benchmark

2. RS-Momentum

Measures the rate of change of RS-Ratio — is relative strength improving or deteriorating?

RS-Momentum = Smoothed(RS-Ratio / RS-Ratio[10 weeks ago]) × 100

• Value > 100 → RS-Ratio is improving
• Value < 100 → RS-Ratio is deteriorating

Both use a 10-week smoothing period (JdK standard).

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Getting Started

Prerequisites

• Python 3.9+
• pip

Installation

# Clone the repository
git clone https://github.com/aayushcodex17/Relative-Rotation-Graph.git
cd Relative-Rotation-Graph

# Create virtual environment
python3 -m venv venv
source venv/bin/activate        # Windows: venv\Scripts\activate

# Install dependencies
pip install -r requirements.txt

# Run the server
uvicorn app.main:app --reload --host 0.0.0.0 --port 8000

Swagger UI: http://localhost:8000/docs

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Example Use Cases

Use Case	Endpoint
Which Nifty sectors are leading right now?	POST /rrg/sectors/india
Compare specific stocks vs Nifty 50	POST /rrg/compute with .NS suffixed symbols
Compare vs a sector benchmark	POST /rrg/compute with custom benchmark
S&P 500 sector rotation	POST /rrg/compute with US sector ETFs, benchmark ^GSPC

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Symbol Format

Market	Format	Example
NSE (India)	TICKER.NS	RELIANCE.NS, TCS.NS
BSE (India)	TICKER.BO	RELIANCE.BO
Nifty Indices	^NSEI, ^NSEBANK	—
US Stocks	TICKER	AAPL, MSFT
US Indices	^GSPC, ^DJI	—

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License

Open source under the MIT License.