The best indicator for Dow Inc. (DOW)
We backtested 20 indicators across daily, weekly and hourly charts on real Dow Inc. (DOW) history. Here's what actually worked — risk-adjusted, out-of-sample, with costs.
Donchian Midline
On the weekly chart, this is the strongest risk-adjusted edge we found for Dow Inc. (DOW) over ~7.2 years — beating buy-and-hold by 9.8% 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 | Donchian Midline ✓ | Weekly | 10.3% | 0.55 | -25.3% | 38.5% | 13 | 9.8% |
| 2 | EMA 20/50 Cross ✓ | Daily | 9.2% | 0.5 | -30.3% | 25.0% | 12 | 9.0% |
| 3 | Rate of Change ✓ | Weekly | 4.9% | 0.33 | -37.6% | 50.0% | 16 | 4.3% |
| 4 | Heikin-Ashi Trend | Weekly | 5.2% | 0.32 | -37.9% | 44.6% | 65 | 4.6% |
| 5 | EMA-10 Trend ✓ | Weekly | 3.7% | 0.27 | -37.2% | 38.7% | 31 | 3.2% |
| 6 | CCI ✓ | Daily | 3.4% | 0.26 | -58.1% | 73.2% | 41 | 3.2% |
| 7 | RSI Trend (>50) ✓ | Weekly | 3.1% | 0.25 | -45.0% | 50.0% | 18 | 2.6% |
| 8 | MACD | Weekly | 3.7% | 0.27 | -55.7% | 33.3% | 12 | 3.1% |
| 9 | MACD | Daily | 0.8% | 0.16 | -52.6% | 38.6% | 70 | 0.6% |
| 10 | Williams %R | Daily | -0.0% | 0.14 | -59.6% | 72.3% | 47 | -0.3% |
| 11 | Donchian Breakout ✓ | Daily | -0.2% | 0.1 | -41.2% | 41.4% | 29 | -0.5% |
| 12 | WaveTrend (8/6/4) | Daily | -1.3% | 0.1 | -58.1% | 64.3% | 28 | -1.5% |
| 13 | Rate of Change | Daily | -1.1% | 0.08 | -53.1% | 38.9% | 113 | -1.3% |
| 14 | ADX / DMI ✓ | Weekly | 0.7% | 0.13 | -30.1% | 33.3% | 9 | 0.2% |
✓ = held up out-of-sample. Hypothetical, costs included. See methodology.
For Dow Inc. (DOW), Donchian Midline on the weekly timeframe gave the best balance of return and risk in our test. It beat buy-and-hold — but remember: this is a hypothetical backtest of a standard rule, not a recommendation. Markets change. See the methodology and disclaimer.
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