# What is Sector Rotation > How money moves between sectors, read on a relative rotation graph. Canonical: https://getmarketstrength.com/watch-what-is-sector-rotation Last updated: 2026-11-07 English · 2:30 · Published 2026-10-28 How money moves between sectors, read on a relative rotation graph. ## What the video says Money in the market never sits still. It keeps moving from one group of stocks to another. This is called sector rotation, and following it helps you stay with the leaders. In one phase, banks lead. In the next, IT takes over. Then metals, or pharma, or defence. The leaders keep changing. Why does this happen? Interest rates, earnings cycles, government spending, global demand. Every phase favours different businesses. The best picture of rotation is the RRG, the relative rotation graph. Every sector is a dot. Going right means the sector is stronger than the market. Going up means its strength is improving. This makes four boxes. Top right is Leading: strong, and getting stronger. Bottom right is Weakening: still strong, but the momentum is fading. Bottom left is Lagging: weak, and still getting weaker. And top left is Improving: still weak, but getting better. Sectors usually move clockwise. From Improving, to Leading, to Weakening, to Lagging, and back to Improving again. The tail behind each dot shows where it came from. A long tail means a fast move. Many traders watch the Improving box closely, because new leaders often come from there. And sectors moving from Leading into Weakening are a warning that the best part of their run may be over. Here is a real rotation graph from Market Strength, with the trails of the last few weeks. The best results come from combining the two ideas: strong stocks inside strong sectors. That is where relative strength works best. On Market Strength, the Sector Rotation tab shows this graph for sectors and themes, with a ranked list and what changed this week. Click any sector to see its strongest stocks. That completes the six concepts. Find all of them, and the app tutorials, in the Education tab. Market Strength is an education and research tool, not investment advice. [Read the guide: Sector rotation scanner for NSE sectors and themes](https://getmarketstrength.com/sector-rotation-nse) ## More videos - [What is Relative Strength](https://getmarketstrength.com/watch-what-is-relative-strength) (English, 2:53) - [Getting Started: Market Strength tour (Hindi)](https://getmarketstrength.com/watch-market-strength-getting-started) (Hindi, 1:48) - [What is VCP](https://getmarketstrength.com/watch-what-is-vcp) (English, 2:40) - [Workspace: Market Strength tour (Hindi)](https://getmarketstrength.com/watch-market-strength-workspace) (Hindi, 2:11) - [What is a Darvas Box](https://getmarketstrength.com/watch-what-is-a-darvas-box) (English, 2:31) - [What is Stage Analysis](https://getmarketstrength.com/watch-what-is-stage-analysis) (English, 2:41) - [What is Market Breadth](https://getmarketstrength.com/watch-what-is-market-breadth) (English, 2:42) - [Sector Rotation: Market Strength tour (Hindi)](https://getmarketstrength.com/watch-market-strength-sector-rotation) (Hindi, 2:05) - [Stock Screener: Market Strength tour (Hindi)](https://getmarketstrength.com/watch-market-strength-stock-screener) (Hindi, 2:37) - [What is the Trend Template](https://getmarketstrength.com/watch-what-is-the-trend-template) (English, 2:37) - [What is a Cup with Handle](https://getmarketstrength.com/watch-what-is-a-cup-with-handle) (English, 2:39) - [What are Moving Averages](https://getmarketstrength.com/watch-what-are-moving-averages) (English, 3:17) - [What is Position Sizing](https://getmarketstrength.com/watch-what-is-position-sizing) (English, 3:23) - [A 52-week-high breakout routine (Hindi video)](https://getmarketstrength.com/watch-52-week-high-breakout-routine) (Hindi, 14:23) - [Reading relative strength on a chart (Hindi video)](https://getmarketstrength.com/watch-relative-strength-indicator-tradingview) (Hindi, 10:26) - [Reading a rotation chart step by step (Hindi video)](https://getmarketstrength.com/watch-sector-rotation-rrg-chart) (Hindi, 14:34) - [Market Strength Scanner: Full Walkthrough (Hindi)](https://getmarketstrength.com/watch-market-strength-full-walkthrough) (Hindi, 17:42) [All video lessons](https://getmarketstrength.com/videos) --- Source: Market Strength Scanner (https://getmarketstrength.com). Educational content, not investment advice. Cite with the canonical URL above.