Published on: September 27, 2024
Sector rotation is the market’s way of saying, “Catch me if you can?”
Traders need to focus their attention on where this momentum lies, as missing out on it can mean missed opportunities. However, keeping track of more than 50 sectors with multiple charts and indicators can become an overwhelming task.
Fortunately, Definedge offers a powerful solution to simplify this: Definedge Momentum and Performance (DeMAP).
The Power of Sector Rotation
In trading, sector rotation refers to the cyclical movement of money from one sector to another. Markets are dynamic, and as economic conditions evolve, different sectors come into or fall out of favour. Traders must identify where the momentum is shifting to get ahead of market trends.
For instance, when the IT sector peaks, money might flow into defensive sectors like FMCG or Pharma. In machine trading, such rapid transitions make it almost impossible to track multiple sector charts manually using conventional methods. This is where DeMAP steps in, allowing traders to make data-driven decisions without being bogged down by complex analysis processes.
Introducing DeMAP
Definedge Momentum and Performance (DeMAP) is a unique, all-encompassing study developed by Definedge. It is designed to help traders quickly analyse sectors, segments, and stocks at a glance. DeMAP’s ability to incorporate and compute multiple forms of technical analysis makes it stand out, offering a well-rounded snapshot of the market.
DeMAP integrates popular studies and factors widely practised by traders, such as:
- Price Analysis
- Momentum Indicators
- Trend Following Indicators
- Range-Bound Oscillators
- Popular Technical studies
- Relative Strength Analysis
- Dynamic Relative Strength Analysis
- Breadth Analysis
- Candlestick Patterns
- Point & Figure Charts
- Renko Charts
- Line-Break Charts
- Price Patterns
This rich data is synthesised into the DeMAP calculation, making it much easier to identify where the momentum is within the market and which sectors are poised for strong performance.
Understanding the DeMAP Chart
The beauty of DeMAP lies in its simplicity. It presents complex data in a format that even novice traders can quickly grasp. The chart is divided into two parts: Sky and Water.
1. Sky: Scrips or stocks above the zero line are placed in the Sky. These are represented as stars, signalling bullish momentum.
– Green Star: These stocks are bullish and carry strong momentum.
– Blue Star: Semi-bullish stocks are signalling momentum building up but not yet in full force.
2. Water: Scrips or stocks below the zero line are in the Water and are shown as circles, signalling bearish momentum.
– Red Circle: Bearish stocks with weak momentum.
– Orange Circle: Semi-bearish stocks that might be in a consolidation phase but lack clear upward momentum.
In addition to stars and circles, there is a circle at the centre of every chart:
– Left Position: Indicates the sector is bullish.
– Right Position: Signals a bearish sector.
– Middle Position: Neutral phase for the sector, offering traders insight into sectors in transition.
The Dynamic View: Tracking Trends with Precision
DeMAP enables traders to plot sector data on various indices, sectors, and constituent stocks. Whether you want to analyse the NSE Sectors or specific sectors created by Definedge, DeMAP presents user-friendly information.

One powerful feature of DeMAP is its ability to track each stock or sector’s last 10-session journey. This allows traders to see recent performance and identify trends over a short-term period.
For example:
If a Green Star stock has remained bullish for the past 10 sessions, it might indicate sustained momentum, making it a potential buy.
– Conversely, a Red Circle bearish stock might suggest caution unless there is a clear signal of reversal.
DeMAP: Simplifying Outperforming & Underperforming Sector and Stocks
DeMAP can aggregate technical indicators, price patterns, and momentum trends into an easy-to-read chart that helps traders stay ahead of the curve.
With DeMAP, they can quickly assess which sectors are gaining momentum, which are losing steam, and where to focus their trading efforts.
Additionally, traders can also take a top-down approach, examining overall sectors and stocks within the sector, which will help them find outperforming and underperforming stocks.
Here is how you can find the DeMAP in RZONE:
- Log in with your credentials in RZONE
- In the left menu, Click on D Scanners
- Select DeMAP

As we have created 65 sectorial Equal Weight Index under Definedge Group, sometimes it isn’t easy to find the best within them.
You can now create a filter of Candlestick, P&F, Renko, Kagi and Line Brea with more additional conditions to filter the best sectors and stocks.

You can watch the video and get to know more about the DeMAP. Click here: