Capital Rotational Event CRE As A Multi Pair ScannerCapital Rotational Event (CRE) – Multi Pair Rotation Scanner
This open-source, non-overlay indicator scans for **capital rotation signals** across one lead/benchmark asset and up to four receiver/target assets simultaneously.
It detects when capital appears to be rotating **into** one or more of the receiver assets relative to the lead asset — a classic macro/rotation concept used in intermarket analysis.
Core Concept
In regime-shifting or macro-driven markets, money flows between asset classes or correlated instruments (risk-on → risk-off, equities → bonds, growth → value, etc.). When one asset class starts consistently outperforming another — and that outperformance is accelerating — it can signal a change in investor preference, risk appetite, or sector leadership.
This scanner visualizes that rotation in real time by calculating relative strength + momentum for multiple pairs at once.
How It Works
1. User selects:
- One Lead/ Benchmark asset (default: SPY – equities proxy)
- Up to four Receiver assets (defaults: GLD, TLT, USO, XLE)
2. For each receiver pair:
- Relative Strength (RS) = SMA( Receiver Close / Lead Close , RS Length )
- RS Momentum = SMA( change(RS) , Momentum Length )
3. Rotation Signal per pair:
- Bullish CRE (+1): RS > its own SMA **and** RS momentum > 0
→ Receiver outperforming Lead **and** the outperformance is accelerating
- Bearish CRE (-1): RS < its own SMA **and** RS momentum < 0
→ Receiver underperforming Lead **and** the underperformance is accelerating
- Neutral (0): otherwise
4. Visual Output:
- Four separate lines (green, blue, orange, purple) showing CRE signal for each receiver
→ +1 = bullish rotation into that asset
→ -1 = bearish rotation away from that asset
→ 0 = no clear rotation
- Background tint: light green when **at least one** receiver shows bullish CRE (+1)
Why this multi-pair scanner?
- Single-pair RS tools only show one relationship at a time.
- Monitoring multiple receivers simultaneously reveals **which** asset class or sector is currently receiving capital flows — very useful for macro traders, sector rotation strategies, or risk-on/off positioning.
- The momentum filter reduces lag and false signals compared to raw RS crossovers alone.
Typical Use Cases
- Risk-on/Risk-off: SPY (lead) vs GLD + TLT + USO (safe havens/commodities)
- Sector leadership: SPY vs XLE (energy) + XLK (tech) + XLV (healthcare) + XLF (financials)
- Macro themes: SPY vs TLT (equities vs bonds), DXY vs GLD, etc.
- Timeframes: Daily/weekly for macro swings, 4h/1h for tactical rotations
How to Use
1. Apply to any chart (timeframe of your choice — the indicator is timeframe-agnostic).
2. Set your preferred Lead asset and up to 4 Receivers in the inputs.
3. Adjust RS Length (default 14) and Momentum Length (default 9) to match your horizon.
4. Interpretation:
- Green line above zero → capital rotating into that receiver
- Multiple green lines rising → strong multi-sector rotation
- Light green background → at least one bullish rotation detected
- Use in combination with price action on the actual assets — this is a relative bias tool, not a direct trade signal.
5. Best in trending or regime-shifting markets; less useful when all assets move in strong correlation.
Inputs
- Lead Asset: benchmark (default SPY)
- Receiver 1–4: assets to monitor rotation into (defaults GLD, TLT, USO, XLE)
- RS Length: smoothing for relative strength (default 14)
- Momentum Length: smoothing for RS change (default 9)
Publishing Recommendation
- Publish with a clean chart (e.g., daily or 4h SPY, or any index/ETF)
- The indicator is non-overlay — it plots in a separate pane below price
- No other indicators needed for basic use
This script is fully open-source for transparency and learning. It highlights relative rotation patterns — not guaranteed future performance. Trading and investing involve significant risk of loss.
Feedback welcome — especially suggestions for other useful receiver pairs!
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