RRG Lines

Author: Optuma Team Last updated: Jan 31, 2023 13:59

Overview

The RRG Lines is a proprietary tool, based on the Relative Rotation Graph (RRG®) work of Julius de Kempenaer. You may be familiar with the RRG chart showing the ‘tails’ and rotation of a stock or sector by calculating the relative momentum and ratio against a benchmark. The RRG Lines are simply a graphical representation of the tail values plotted on a price chart.

In this example, Amazon has an RS-Momentum value of 103.2 and an RS-Ratio of 100.4 against the S&P500 index, meaning that because both are above 100 Amazon is in the Leading quadrant - as confirmed in the RRG chart on the left.

The candles have been coloured using the RRG Quadrant colour scheme, so when the RRG Lines are both below 100 (ie in the bottom left Lagging quadrant) the bars are coloured red, blue for Improving, etc. As the red RRG Ratio line below the chart just crossed above 100 the most recent candle turned green as it moved in to Leading.

*Note: RRG Quadrant bar colours are available with the full version of the RRG module only.*

To add an RRG Lines to your chart, select the tool from the Relative Rotations Graphs tool group, and left-click on the chart that you wish to add the RRG Lines to. Optuma will then draw the RRG Lines using the default settings and benchmark.

Scripting Functions: JDKRS() or JDKRSFOREX()

Available from Optuma 2.0 and later the RRG script function has been updated to support TrendBars (previously available as a chart colour scheme only).

Trend Bars are accessed via a dot notation on the JDKRS function. JDKRS().TrendBars

Video

This video is pulled from the Optuma 101 course that you can access from here. This course takes you through the basics of Optuma and helps you get up and running and using Optuma to its full potential. In this video, Darren Hawkins, MSTA, takes you through the how to open and use the RRG chart in Optuma and towards the end of the video, he goes into the application and use of RRG Lines.

Actions & Properties

Actions

Copy Data to Clipboard: Will copy the tool’s values to the clipboard which can then be inserted into a spreadsheet, for example, allowing for further analysis.

Add to Toolbar: Adds the selected tool to your custom toolbar.

Apply Settings to All: When multiple RRG Lines tools have been applied to a chart, page or workbook, this action can be used to apply the settings of the one selected to other instances of the tool. This is a great time saver if an adjustment is made to the tool - such as line colour - as this allows all the other RRG Lines tools in the chart, page or entire workbook to be updated instantly.

Copy Tool: Allows you to copy the selected tool, which can then be pasted onto a different chart window.

Move to Back: If the tool is displaying in front of other tools or indicators clicking this action will move the tool view to the background.

Move to Front: If the tool is displaying behind other tools or indicators on the chart, clicking this action will bring the tool to the forefront.

Restore Default Settings: Click this action if you have adjusted the default settings of the tool, and wish to return to the standard properties originally installed with Optuma.

Save Settings as Default: If you have adjusted any of the tool’s properties (colour, for example) you can save the adjustments as your new default setting. Each time you apply a new RRG Lines to a chart, the tool will display using the new settings.

Delete: Deletes the tool from the chart.

Properties

Tool Name: Allows you to adjust the name of the tool, as it’s displayed in the Structures Panel.

Type: Sets the type of RRG Lines that are displayed, can be set to Combo, Ratio or Momentum.

Comparison Style: Can be set to either Index or Annual Rate of Return.

Annual Rate of Return (%): When the Comparison Style is set to Annual Rate of Return you can then set the percentage level.

Comparison Index: To set or change the comparison index left click on the existing code and the security selection window will be displayed.

RS-Ratio Style: If the Type is set to Combo the RS-Ratio Line Style can be set, this expands to display the following options:

Plot Style - Adjusts the display style for the RS Ratio plot. There are 6 options available: Line, Dot, Histogram, Step, Shaded, Shaded Step.
Line Style - When Line is selected as the Plot Style, the Line Style property allows you to adjust the type of line displayed. There are 8 options available: Solid, Dots, Dash, Dash Dots, Long Dash, Long Dash Dot, Long Dash Dot Dot, Stippled.
Line Width - Allows you to adjust the width of the line for the RS Ratio line. Moving the slider bar to the right increases the thickness of the line. Allows you to adjust the width of the colour for the RS Ratio line. Moving the slider bar to the right increases the thickness of the line.
Line Colour - Allows you to adjust the colour of the RS Ratio line.
Fill Up / Down Barrier - When the Plot Style is set to Shaded you are able to adjust the barrier value, the default value is 0.00.
Fill Up Colour - When the Plot Style is set to Shaded you are then able to alter the Fill Colour for the tool.
Fill Down Colour - When the Plot Style is set to Shaded you are then able to alter the Fill Colour for the tool.
Transparency - Use this slider bar to adjust the transparency of the Oversold Plot. Moving the slider to the left will increase the transparency.
Visible - Un-tick this checkbox to hide the Oversold Plot from the chart.

RS-Momentum Style: If the Type is set to Combo the RS-Ratio Line Style can be set, this expands to display the same options as the RS-Ratio Style.

Centre Line Style: Expands to display the line properties for the Centre Line. The following properties can be adjusted:

Line Style - There are 8 options available: Solid, Dots, Dash, Dash Dots, Long Dash, Long Dash Dot, Long Dash Dot Dot, Stippled.
Line Width - Allows you to adjust the width of the Centre Line. Moving the slider bar to the right increases the thickness of the line.
Line Colour - Allows you to adjust the colour of the Centre Line.
Transparency - Use this slider bar to adjust the transparency of the Centre Line. Moving the slider to the left will increase the transparency.
Visible - Un-tick this checkbox to hide the Centre Line.

Sensitivity: Adjusts the sensitivity of the RRG line calculation (lower values = fast, higher values = slow).

Offset: Moves the tool forward or backwards in time. The offset is measured in bars, so a value of 2 will push the tool forward 2 bars and -2 will move the tool back 2 bars.

Tool Transparency: Use this slider bar to adjust the transparency of the tool. Moving the slider to the left will increase the transparency of the tool.

Visible: Un-tick this checkbox to hide the tool from the chart.

Show In Price Scale: When selected the current Volatility Based Momentum values will be displayed in the Price Scale.