Relative Strength Table

8 hours ago

📊 RRG Quadrant Scanner - Options Trading Market Direction Tool

A powerful Relative Rotation Graph/Table (RRG) dashboard designed to help OPTIONS TRADERS identify market direction, select optimal strikes, and time entries with precision. Track up to 8 symbols against any benchmark to determine bullish/bearish bias and rotation momentum.

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🎯 WHY OPTIONS TRADERS NEED THIS

Unlike stock traders who can hold losing positions indefinitely, options traders face:
❌ Time decay (theta)
❌ Directional risk (delta)
❌ Volatility changes (vega)
❌ Limited time to be right

This indicator solves these challenges by showing you:
✅ Which direction momentum is flowing (calls vs puts)
✅ Which symbols/sectors have strongest trends (high probability setups)
✅ When rotation is happening (timing entries/exits)
✅ Market breadth for directional confirmation

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🔥 HOW RRG QUADRANTS GUIDE OPTIONS TRADING

🟢 LEADING QUADRANT (Top Right) - BULLISH BIAS
What it means:
• Strong uptrend vs benchmark
• Accelerating momentum
• High relative strength

Options Strategies:
✅ BUY CALLS (ITM/ATM for safer, OTM for aggressive)
✅ SELL CASH-SECURED PUTS (collect premium on strong stocks)
✅ BULL CALL SPREADS (defined risk directional plays)
✅ LONG CALL DIAGONALS (capture continued uptrend)

Direction Signal: STRONG BULLISH
• Multiple symbols in Leading = broad market strength
• Index options: favor call side
• Stock options: bullish strategies on individual leaders

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🔵 IMPROVING QUADRANT (Top Left) - EARLY BULLISH
What it means:
• Currently underperforming BUT gaining momentum
• Early reversal signal
• Rotation from weak to strong

Options Strategies:
✅ BUY CALLS with longer expiry (give time to develop)
✅ BULL PUT SPREADS (defined risk as support builds)
✅ SELL PUTS at support (premium collection on improving stocks)
✅ CALENDAR SPREADS (benefit from time and momentum shift)

Direction Signal: EMERGING BULLISH
• Symbols moving Lagging → Improving = early buy signal
• Best for patient options traders
• Use longer DTE (45-60 days) to allow rotation to complete
• Watch for move into Leading quadrant for confirmation

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🔴 LAGGING QUADRANT (Bottom Left) - BEARISH BIAS
What it means:
• Weak relative strength
• Declining momentum
• Persistent underperformance

Options Strategies:
✅ BUY PUTS (directional bearish play)
✅ BEAR CALL SPREADS (defined risk on weakness)
✅ SELL COVERED CALLS (if stuck in position)
✅ PUT DEBIT SPREADS (cheaper than naked puts)

Direction Signal: STRONG BEARISH
• Multiple symbols in Lagging = market weakness
• Avoid bullish strategies entirely
• Index options: favor put side
• Exit existing long calls immediately

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⚫ WEAKENING QUADRANT (Bottom Right) - EARLY BEARISH
What it means:
• Currently strong BUT losing momentum
• Topping signal
• Rotation from strong to weak

Options Strategies:
✅ SELL CALLS (initiate bearish bias)
✅ BEAR PUT SPREADS (cheaper than naked puts)
✅ CLOSE LONG CALLS (take profits before decay accelerates)
✅ PROTECTIVE PUTS (if holding stock positions)
✅ SHORT STRADDLES/STRANGLES (if expecting range-bound)

Direction Signal: EMERGING BEARISH
• Symbols moving Leading → Weakening = profit-taking signal
• Close bullish positions EARLY
• Initiate bearish strategies
• Watch for move into Lagging for confirmation of downtrend

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🎯 MARKET DIRECTION CONFIRMATION FOR INDEX OPTIONS

Trading NIFTY/BANKNIFTY/SPX Options? Use this way:

📊 Track These Symbols Against Benchmark:
• Major sectors: Finance, IT, Energy, Auto, Pharma
• Top stocks: RELIANCE, HDFCBANK, INFY, TCS, etc.
• Benchmark: NIFTY or BANKNIFTY

🟢 BULLISH INDEX BIAS (Buy Calls/Sell Puts)
When you see:
• 60%+ symbols in Leading + Improving quadrants
• Financial sector in Leading (indicates BANKNIFTY strength)
• IT sector in Leading (indicates NIFTY strength)
• Few symbols in Lagging

Strategy: Aggressive call buying, put selling, bull spreads

🔴 BEARISH INDEX BIAS (Buy Puts/Sell Calls)
When you see:
• 60%+ symbols in Lagging + Weakening quadrants
• Key sectors rotating to Weakening
• Broad-based weakness across watchlist

Strategy: Put buying, bear spreads, avoiding new longs

⚖️ NEUTRAL/ROTATION PHASE (Iron Condors/Strangles)
When you see:
• Symbols evenly distributed across quadrants
• No clear cluster in any one quadrant
• Conflicting signals between sectors

Strategy: Range-bound strategies, avoid directional bets, reduce position size

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💡 OPTIONS TRADING USE CASES

🎯 Case 1: Earnings Play Setup
Before earnings, check if stock is in:
• Leading = bullish bias, buy calls
• Improving = emerging strength, cautious calls
• Weakening = avoid or buy puts
• Lagging = strong puts

🎯 Case 2: Weekly Options Direction
Monday morning setup:
• Check sector quadrants vs benchmark
• Leading sectors = focus call trades there
• Weakening sectors = focus put trades
• Adjust delta exposure based on quadrant distribution

🎯 Case 3: Spread Selection
For credit spreads:
• Sell puts on Leading/Improving symbols (bullish)
• Sell calls on Weakening/Lagging symbols (bearish)
• Iron condors when symbols are scattered (no clear direction)

🎯 Case 4: Portfolio Hedging
If holding calls:
• Watch symbols move Leading → Weakening = add protective puts
• If 50%+ watchlist enters Weakening = hedge entire portfolio

If holding puts:
• Watch symbols move Lagging → Improving = close puts early
• If broad rotation to Improving = exit bearish positions

🎯 Case 5: Theta Decay Management
Leading quadrant = hold calls longer (trend supports you)
Weakening quadrant = close calls early (decay + downside risk)
Improving quadrant = be patient with calls (need time to develop)
Lagging quadrant = hold puts or exit quickly if rotation starts

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📈 SECTOR ROTATION FOR OPTIONS STOCK SELECTION

Instead of trading index options, use quadrants to pick individual stocks:

Setup Example - NSE Options:
Symbols: RELIANCE, HDFCBANK, INFY, TCS, SBIN, ICICIBANK, TATAMOTORS, BAJFINANCE
Benchmark: NIFTY

Monday Strategy Session:
1. Check which stocks are in Leading quadrant
2. Focus call trades ONLY on Leading stocks
3. Check which stocks are in Weakening/Lagging
4. Focus put trades on those
5. Ignore stocks in unclear quadrants (save capital)

This approach:
✅ Increases win rate (trading with momentum)
✅ Reduces losses (avoiding weak stocks)
✅ Improves timing (catch early rotations)

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🔥 REAL TRADING SCENARIOS FOR OPTIONS

📊 Scenario 1: Strong Bullish Market
Quadrant Status:
• Leading: 5 symbols
• Improving: 2 symbols
• Weakening: 1 symbol
• Lagging: 0 symbols

Options Action:
✅ Aggressive call buying on index
✅ Bull call spreads on leading stocks
✅ Sell puts on improving stocks
✅ Avoid bearish strategies
✅ Larger position sizes (conviction high)

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📊 Scenario 2: Rotation/Choppy Market
Quadrant Status:
• Leading: 2 symbols
• Improving: 2 symbols
• Weakening: 2 symbols
• Lagging: 2 symbols

Options Action:
⚠️ AVOID directional bets
✅ Iron condors/strangles (profit from range)
✅ Calendar spreads (volatility plays)
✅ Smaller position sizes
✅ Wait for clearer rotation signal

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📊 Scenario 3: Bearish Reversal
Quadrant Status:
• Leading: 1 symbol
• Improving: 0 symbols
• Weakening: 3 symbols
• Lagging: 4 symbols

Options Action:
✅ Buy puts on index
✅ Bear call spreads on weakening stocks
✅ CLOSE all long calls immediately
✅ Sell covered calls if stuck in stocks
✅ Increase hedge positions

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📊 Scenario 4: Early Recovery
Quadrant Status:
• Leading: 1 symbol
• Improving: 4 symbols (moving from Lagging)
• Weakening: 1 symbol
• Lagging: 2 symbols

Options Action:
✅ Buy calls with 45-60 DTE (give time to develop)
✅ Bull put spreads on improving stocks
✅ Small position sizes initially
✅ Scale in as symbols move to Leading
✅ Close remaining bearish positions

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🎯 TIMING ENTRY/EXIT WITH QUADRANTS

📍 BEST CALL ENTRIES:
1. Symbol moves Improving → Leading (momentum confirmed)
2. 70%+ watchlist in Leading/Improving (broad strength)
3. Key sector enters Leading (focused strength)

📍 BEST PUT ENTRIES:
1. Symbol moves Weakening → Lagging (downtrend confirmed)
2. 70%+ watchlist in Weakening/Lagging (broad weakness)
3. Leading symbols suddenly drop to Weakening (reversal)

📍 EXIT SIGNALS:
Calls: Close when symbol enters Weakening
Puts: Close when symbol enters Improving
Both: Take profits at 50-70% max gain if rotation unclear

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⚙️ SETUP FOR OPTIONS TRADERS

For NIFTY Options Traders:
• Symbols: Top 8 NIFTY stocks (RELIANCE, HDFCBANK, INFY, etc.)
• Benchmark: NIFTY
• Window: 20 periods
• Timeframe: Daily chart
• Use: Gauge NIFTY direction

For BANKNIFTY Options Traders:
• Symbols: Banking stocks (HDFCBANK, ICICIBANK, SBIN, KOTAKBANK, AXISBANK)
• Benchmark: BANKNIFTY
• Window: 20 periods
• Use: Gauge BANKNIFTY direction

For Stock Options Traders:
• Symbols: Your watchlist of optionable stocks
• Benchmark: Relevant sector index
• Window: 10-20 periods
• Use: Pick strongest/weakest for directional trades

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🎓 OPTIONS TRADING RULES USING QUADRANTS

✅ Rule 1: Only buy calls on Leading/Improving stocks
✅ Rule 2: Only buy puts on Weakening/Lagging stocks
✅ Rule 3: Exit calls when stock enters Weakening
✅ Rule 4: Exit puts when stock enters Improving
✅ Rule 5: Use longer DTE when trading Improving/Weakening (rotation takes time)
✅ Rule 6: Use shorter DTE when trading Leading/Lagging (established trends)
✅ Rule 7: If 70%+ watchlist in one side = strong directional bias
✅ Rule 8: If symbols scattered = reduce position sizes, play neutral

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🏆 ADVANTAGES FOR OPTIONS TRADERS

✅ HIGHER WIN RATE
Trade only symbols with clear momentum direction

✅ BETTER TIMING
Catch rotations early = maximize profit potential

✅ REDUCED THETA DECAY LOSSES
Don't hold calls on weakening stocks (double loss)

✅ CLEARER MARKET BIAS
Know if market is bullish/bearish/neutral

✅ PORTFOLIO ALIGNMENT
Match your delta exposure to market direction

✅ EARLY WARNING SYSTEM
Spot rotations before price breaks down/up

✅ RISK MANAGEMENT
Exit positions before momentum shifts against you

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📚 COMBINING WITH OTHER ANALYSIS

This indicator works best when combined with:

📊 Technical Analysis
• Support/Resistance for strike selection
• Chart patterns for entry timing
• Volume for confirmation

📈 Volatility Analysis
• IV Rank for premium selling decisions
• VIX/India VIX for overall market risk

⏰ Time Analysis
• Check quadrants before weekly expiry
• Align DTE with expected rotation speed

💰 Greeks Management
• High delta on Leading symbols (directional confidence)
• Low delta on Improving symbols (early, needs time)
• Negative delta on Weakening/Lagging (bearish bias)

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⚠️ WHAT THIS INDICATOR DOESN'T DO

❌ Doesn't predict exact option prices
❌ Doesn't tell you which strike to buy
❌ Doesn't replace risk management
❌ Doesn't account for news/events
❌ Doesn't consider implied volatility
❌ Doesn't guarantee winning trades

It DOES give you:
✅ Market direction bias
✅ Symbol selection edge
✅ Rotation timing awareness
✅ Risk/reward framework

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🎯 BOTTOM LINE FOR OPTIONS TRADERS

Stop fighting momentum. Stop buying calls on weakening stocks. Stop holding positions through rotations.

Instead:
• Check quadrants BEFORE entering trades
• Buy calls only on Leading/Improving
• Buy puts only on Weakening/Lagging
• Exit when rotation signals change
• Adjust position size based on breadth

This simple framework can dramatically improve your options trading win rate and reduce catastrophic losses from holding through momentum reversals.

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⭐ START TRADING WITH THE TREND

Add this RRG Quadrant Scanner and align your options trades with market rotation - not against it!

5 hours ago

Release Notes

Mfix

5 hours ago

Release Notes

Mfix

5 hours ago

Release Notes

MFix

4 hours ago

Release Notes

MFix

4 hours ago

Release Notes

Feature Update
### **1. Index Weightage System** ⚖️

**What it does:**
This feature assigns each stock its real weightage percentage in the index (NIFTY50 or BANKNIFTY). For example, RELIANCE has 10.15% weight in NIFTY50, while HDFCBANK has 28.35% in BANKNIFTY.

**Why it matters:**
Not all stocks impact the index equally. A 5% move in RELIANCE (10% weight) has 10x more impact on NIFTY than a 5% move in a 1% weighted stock. This feature calculates Relative Strength using weighted benchmark instead of equal-weight, giving you accurate index movement predictions.

**Key Benefits:**
- ✅ Accurate index direction forecast
- ✅ Identifies which stocks are actually moving the index
- ✅ Better options entry/exit timing
- ✅ Shows each stock's impact percentage (Wt% column)

**Toggle ON/OFF:** Use "Use Weighted RS" setting

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### **2. BREADTH RATIO** 📊

**What it does:**
Measures the ratio of bullish stocks (Leading + Improving) to bearish stocks (Lagging + Weakening). Formula: `(Leading + Improving) / (Lagging + Weakening)`

**Why it matters:**
Professional traders use breadth ratio to determine overall market health and select appropriate options strategies. It's a leading indicator that often predicts index reversals before they happen.

**Trading Signals:**
- **> 1.5** → Strong Bullish → Buy Calls, Bull Call Spreads, Long Straddles
- **0.67 - 1.5** → Neutral/Rangebound → Iron Condors, Short Strangles, Ratio Spreads
- **< 0.67** → Strong Bearish → Buy Puts, Bear Put Spreads, Protective Puts

**Real Example:**
If Breadth = 2.0, it means there are 2x more bullish stocks than bearish → Strong bullish market → Ideal for directional call buying

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### **3. INDEX BIAS** 🎯

**What it does:**
Calculates the **weighted impact** of bullish vs bearish stocks on the index. Unlike simple counting, this considers each stock's actual weightage. Shows as percentage (0-100%).

**Why it matters:**
Even if 60% of stocks are bullish, if heavyweight stocks (RELIANCE, HDFCBANK, ICICIBANK) are bearish, the index will fall. INDEX BIAS shows the **real direction** based on what matters most.

**Trading Signals:**
- **> 60%** → Strong bullish weighted impact → **Aggressive long strategies, OTM calls**
- **40-60%** → Neutral → **Premium selling, volatility arbitrage**
- **< 40%** → Strong bearish weighted impact → **Aggressive short strategies, OTM puts**

**Real Example:**
- Scenario A: 10 stocks bullish (1% weight each) + 5 stocks bearish (10% weight each) → Index BIAS = 17% → **BEARISH BIAS** → Trade bearish despite 66% breadth!
- Scenario B: RELIANCE (10%) + HDFCBANK (9.3%) + ICICIBANK (7.8%) all bullish → Index BIAS > 60% even if other stocks weak → **BULLISH BIAS**

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### **Combined Strategy Matrix** 🎯

| Breadth Ratio | Index Bias | Market Condition | Options Strategy |
|--------------|------------|------------------|------------------|
| > 1.5 | > 60% | **Strong Bull** | Long Calls, Bull Call Spread |
| > 1.5 | 40-60% | **Weak Bull** | Call Ratio Spread, Call Calendar |
| 0.67-1.5 | 40-60% | **Neutral/Choppy** | Iron Condor, Short Strangle |
| < 0.67 | < 40% | **Strong Bear** | Long Puts, Bear Put Spread |
| < 0.67 | 40-60% | **Weak Bear** | Put Ratio Spread, Put Calendar |

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### **Why These 3 Features Make This Indicator Professional-Grade:**

1. **Weightage System** → Shows WHO is moving the market
2. **Breadth Ratio** → Shows HOW MANY are participating
3. **Index Bias** → Shows WHERE the index is actually heading

**Together, they answer the three critical questions every options trader needs:**
- ✅ Which stocks matter most? (Weightage)
- ✅ Is the market healthy? (Breadth)
- ✅ What's the real direction? (Index Bias)

3 hours ago

Release Notes

Mfix

3 hours ago

Release Notes

Mfix