The best indicator for ServiceNow (NOW)
We backtested 20 indicators across daily, weekly and hourly charts on real ServiceNow (NOW) 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 ServiceNow (NOW) over ~14.0 years — trailing buy-and-hold by 5.5% 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 | 19.6% | 0.83 | -39.5% | 50.0% | 30 | -5.5% |
| 2 | MACD ✓ | Weekly | 12.1% | 0.6 | -36.3% | 58.1% | 31 | -12.9% |
| 3 | RSI Trend (>50) ✓ | Weekly | 13.2% | 0.59 | -39.9% | 45.5% | 33 | -11.8% |
| 4 | Bollinger Mean-Reversion ✓ | Daily | 10.0% | 0.55 | -42.4% | 78.2% | 55 | -15.2% |
| 5 | Rate of Change ✓ | Weekly | 11.4% | 0.55 | -47.1% | 51.4% | 37 | -13.7% |
| 6 | WaveTrend (8/6/4) ✓ | Daily | 11.7% | 0.53 | -56.2% | 75.9% | 54 | -13.5% |
| 7 | Bollinger Breakout ✓ | Weekly | 8.7% | 0.52 | -44.3% | 50.0% | 16 | -16.3% |
| 8 | EMA 20/50 Cross ✓ | Daily | 11.0% | 0.51 | -40.0% | 53.1% | 32 | -14.3% |
| 9 | ADX / DMI | Weekly | 8.9% | 0.49 | -37.3% | 55.0% | 20 | -16.1% |
| 10 | EMA-10 Trend | Weekly | 9.6% | 0.47 | -59.2% | 46.4% | 69 | -15.5% |
| 11 | Stochastic ✓ | Daily | 8.8% | 0.45 | -55.6% | 73.4% | 64 | -16.5% |
| 12 | CCI ✓ | Daily | 9.1% | 0.45 | -46.5% | 71.8% | 71 | -16.2% |
| 13 | Williams %R ✓ | Daily | 8.8% | 0.44 | -56.4% | 72.7% | 88 | -16.4% |
| 14 | MACD | Daily | 8.4% | 0.43 | -54.0% | 47.5% | 141 | -16.8% |
✓ = held up out-of-sample. Hypothetical, costs included. See methodology.
For ServiceNow (NOW), Donchian Midline on the weekly 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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