The best indicator for Broadcom (AVGO)
We backtested 20 indicators across daily, weekly and hourly charts on real Broadcom (AVGO) history. Here's what actually worked — risk-adjusted, out-of-sample, with costs.
WaveTrend (8/6/4)
On the daily chart, this is the strongest risk-adjusted edge we found for Broadcom (AVGO) over ~16.8 years — trailing buy-and-hold by 18.8% CAGR.
The winner on each chart
Every indicator, ranked
Ranked by Sharpe (risk-adjusted return). Hypothetical, fees included.
| # | Indicator | TF | CAGR | Sharpe | Max DD | Win | Trades | vs B&H |
|---|---|---|---|---|---|---|---|---|
| 1 | WaveTrend (8/6/4) ✓ | Daily | 22.7% | 0.92 | -42.6% | 80.6% | 67 | -18.8% |
| 2 | Rate of Change ✓ | Weekly | 22.9% | 0.85 | -43.0% | 54.2% | 48 | -18.1% |
| 3 | RSI Mean-Reversion ✓ | 1-Hour | 27.5% | 1.42 | -18.0% | 80.0% | 40 | -40.1% |
| 4 | Heikin-Ashi Trend ✓ | Weekly | 19.1% | 0.82 | -33.5% | 56.2% | 153 | -21.9% |
| 5 | Rate of Change ✓ | 1-Hour | 51.8% | 1.41 | -34.0% | 38.5% | 288 | -15.8% |
| 6 | Stochastic ✓ | Daily | 17.3% | 0.81 | -41.4% | 78.8% | 80 | -24.2% |
| 7 | Bollinger Breakout ✓ | 1-Hour | 40.1% | 1.39 | -24.7% | 44.9% | 78 | -27.5% |
| 8 | Holy Grail Confluence ✓ | Daily | 14.2% | 0.78 | -42.7% | 95.5% | 22 | -27.3% |
| 9 | Donchian Midline ✓ | Weekly | 20.7% | 0.78 | -47.3% | 52.2% | 46 | -20.3% |
| 10 | EMA 20/50 Cross ✓ | Daily | 20.6% | 0.76 | -44.3% | 51.3% | 39 | -20.9% |
| 11 | RSI Trend (>50) ✓ | Weekly | 20.7% | 0.76 | -48.5% | 53.1% | 49 | -20.4% |
| 12 | MACD ✓ | 1-Hour | 44.7% | 1.29 | -25.5% | 42.9% | 191 | -22.9% |
| 13 | SMA 50/200 Cross ✓ | Daily | 23.1% | 0.77 | -52.4% | 50.0% | 14 | -18.4% |
| 14 | Donchian Breakout ✓ | Daily | 15.8% | 0.71 | -31.5% | 55.1% | 69 | -25.6% |
✓ = held up out-of-sample. Hypothetical, costs included. See methodology.
For Broadcom (AVGO), WaveTrend (8/6/4) on the daily timeframe gave the best balance of return and risk in our test. It still trailed buy-and-hold on raw return — but remember: this is a hypothetical backtest of a standard rule, not a recommendation. Markets change. See the methodology and disclaimer.
More stock
Get the weekly edge report
The best-performing indicator per asset, what changed this week, and the honest caveats — straight to your inbox.