Sector Rotation With Sector Relative Strength [Afnan]

Most traders spend their time reading charts, drawing levels, waiting for breakouts, and searching for the perfect Demand Zone pattern. But very few ask the most important question:
“Is the sector supporting my trade?”

That single question often separates strong moves from failed setups. A breakout inside a weak sector usually fades. A demand zone inside an underperforming group often breaks. But a stock backed by a strong sector? Even a simple pattern can turn into a powerful trending move.

This is where the Sector Relative Strength [Afnan] indicator becomes a game-changer.

🧭 Why Sector Strength Matters 🧭
When institutional money rotates from one sector to another, prices shift in a way that pure price action cannot reveal on its own. This rotation is what fuels trends in some stocks while suppressing others.

• A weak stock in a strong sector can still deliver solid moves.
  
• A strong chart inside a weak sector often struggles.
  
• Sector rotation is an early signal of where markets want to move next.
  
• Following sector flow aligns your trades with market momentum rather than fighting it.
  

This indicator simplifies all of that.

📌 What This Indicator Brings to the Table 📌
Sector Relative Strength Afnan provides real-time sector rotation directly on TradingView, condensing complex institutional analysis into a clean and actionable structure.

• Tracks 26 Indices at once.
  
• Uses multi-timeframe relative strength — RS21, RS55, and RS123.
  
• Automatically detects your stock’s related sector.
  
• Compares each sector with your chosen benchmark.
  
• Shows short-term and medium-term rank changes.
  
• Uses EMA alignment to classify trends.
  
• Displays heatmap colors for instant clarity.
  
• Shows market sentiment as outperform, mixed, or underperform.
  
• Fully customizable for traders outside India as well.
  

This transforms sector analysis from a tedious manual task into a smooth, visual workflow.

🛠️ How to Use It Like a Pro 🛠️
To unlock the full potential of this indicator, use it in a two-layer setup:

• Add the first instance with the table ON — this is your sector scanner.
  
• Add the second instance with the table OFF — this keeps your chart clean while still showing relative strength lines and sector mapping.
  

Once your setup is ready, focus on sectors that show:

• High ranking positions.
  
• Positive relative strength across periods.
  
• Clear trend alignment.
  
• Improving rank over 5 and 21 bars.
  

Avoid sectors that fall deep into the red zone or show consistent deterioration. These areas often trap traders and reduce momentum.

Following this simple rule — trade in strong sectors and avoid weak ones — instantly improves trade selection.

🚀 What Makes This Tool Truly Unique 🚀
To manually replicate everything this indicator does, you would need to calculate:

• Relative strength for every sector.
  
• Sector-to-benchmark comparisons.
  
• Multi-period RS changes.
  
• Trend checks through EMA alignment.
  
• Rank history for multiple lookbacks.
  
• Heatmap scoring.
  
• Sentiment classification.
  

This is the type of work traders either avoid or pay subscription fees for on premium websites.
Having it automated inside a TradingView indicator saves hours and removes guesswork, allowing you to focus on the highest-probability opportunities.

📌

“The market rewards those who follow strength, not those who chase noise.”

Lastly, Thank you for your support, your likes & comments.
✨ Keep learning, stay disciplined, and let the trend be your guide. ✨

This analysis is purely for educational purposes and is not a trading or investment recommendation. I am not a SEBI-registered analyst.