The best indicator for Lumentum (LITE)
We backtested 20 indicators across daily, weekly and hourly charts on real Lumentum (LITE) history. Here's what actually worked — risk-adjusted, out-of-sample, with costs.
Bollinger Mean-Reversion
On the daily chart, this is the strongest risk-adjusted edge we found for Lumentum (LITE) over ~10.8 years — trailing buy-and-hold by 20.1% 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 | Bollinger Mean-Reversion ✓ | Daily | 23.6% | 0.91 | -29.4% | 76.5% | 51 | -20.1% |
| 2 | EMA-10 Trend ✓ | Weekly | 29.8% | 0.84 | -70.0% | 32.7% | 52 | -13.5% |
| 3 | Heikin-Ashi Trend ✓ | Weekly | 27.9% | 0.8 | -71.3% | 49.5% | 93 | -15.4% |
| 4 | Rate of Change ✓ | Weekly | 26.4% | 0.76 | -73.5% | 41.9% | 31 | -16.8% |
| 5 | RSI Trend (>50) ✓ | Weekly | 25.1% | 0.74 | -79.5% | 27.3% | 33 | -18.2% |
| 6 | CCI ✓ | Weekly | 18.7% | 0.74 | -43.7% | 86.7% | 15 | -24.6% |
| 7 | Bollinger Breakout ✓ | Daily | 18.6% | 0.71 | -45.2% | 51.2% | 41 | -25.0% |
| 8 | Donchian Midline ✓ | Daily | 21.7% | 0.69 | -68.3% | 44.5% | 137 | -21.9% |
| 9 | MACD ✓ | Weekly | 20.3% | 0.67 | -71.2% | 40.9% | 22 | -23.0% |
| 10 | Rate of Change ✓ | Daily | 19.7% | 0.65 | -73.2% | 42.7% | 171 | -23.9% |
| 11 | Donchian Breakout ✓ | Daily | 17.9% | 0.64 | -45.8% | 46.5% | 43 | -25.7% |
| 12 | RSI Trend (>50) ✓ | Daily | 18.6% | 0.62 | -79.6% | 45.2% | 157 | -25.1% |
| 13 | CCI ✓ | Daily | 15.7% | 0.61 | -40.7% | 69.2% | 52 | -28.0% |
| 14 | ADX / DMI ✓ | Weekly | 24.7% | 0.81 | -61.8% | 54.5% | 11 | -18.5% |
✓ = held up out-of-sample. Hypothetical, costs included. See methodology.
For Lumentum (LITE), Bollinger Mean-Reversion 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.
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