The D Sectors study is a sector analysis tool developed by Definedge. You can access it through TradePoint Web and Zone Web.
A score for each sector is determined based on price pattern and trend analysis, relative strength analysis compared to the index, relative strength analysis compared to other sectors, breadth, and momentum.
The components of scoring were finalized after extensive research and study.
As a result of the scores, the sectors are divided into four categories and presented as bubble charts.
Bullish sectors are represented by green bubbles, while bearish sectors are represented by red bubbles.
Sectors with blue bubbles are semi-bullish. Sectors with orange bubbles are semi-bearish.
If you click on the name of the sector, you will be able to view the score and other details.
Sectors continue to rotate within these bubbles. Sectors in the Green bubbles are outperforming and have a strong momentum.
The market is bullish when more sectors are in green bubbles. When more sectors appear in the red bubble, the market is bearish. In range-bound markets, a large number of sectors appear in blue or orange bubbles.
If you click on the D Sectors score table, you will be able to view the score for the past 10 days for each sector.
This table provides an analysis of the shift in sectors.
You can also view this score as a graph by clicking on the D Sector Score chart.
The green bars show a bullish trend, while the red bars show a bearish trend. A blue bar signifies a semi-bullish trend and an orange bar signifies a semi-bearish trend. Sectors with a significant number of green and blue bars indicate a positive rotation. The presence of more orange and red bars indicates that a sector is weak and underperforming.
In this study, two new dimensions have been added: D Sectors and the Breadth Matrix.
There are four parts to this chart. The y-axis represents Sector score and the x-axis represents breadth. Breadth is determined by the number of stocks in a bullish swing in that sector. There is a third dimension to this study, the size of the bubble.
The size of the bubble indicates that many stocks in that sector have triggered bullish breakouts. The smaller bubble indicates a low number of bullish breakouts in that sector.
The fourth part of this chart shows that bullish sectors have a strong level of participation. On the other hand, the first part of the chart shows weak participation from bullish sectors.
There is another interesting study in this chart.
If the bubbles in the third part are smaller or positioned to the left, there is a possibility of a bullish pullback for these sectors. This is because they are bullish and outperformers.
Similarly, the sectors at right in the second part indicate a possible bearish pullback.
These charts can be analyzed in a variety of ways. D Sectors can be run from a short-term, medium-term, or long-term perspective.
D Sectors is a comprehensive sector analysis that considers a number of factors.
Your market regime and sector analysis can benefit greatly from this tool.