The best indicator for Sherwin-Williams (SHW)
We backtested 20 indicators across daily, weekly and hourly charts on real Sherwin-Williams (SHW) 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 Sherwin-Williams (SHW) over ~46.2 years — trailing buy-and-hold by 9.0% 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 | 9.0% | 0.66 | -49.1% | 71.7% | 198 | -9.0% |
| 2 | WaveTrend (8/6/4) ✓ | Weekly | 9.4% | 0.62 | -41.2% | 82.1% | 39 | -8.6% |
| 3 | Stochastic ✓ | Daily | 9.4% | 0.59 | -45.7% | 72.5% | 236 | -8.6% |
| 4 | Holy Grail Confluence ✓ | Daily | 7.8% | 0.56 | -31.0% | 82.0% | 61 | -10.1% |
| 5 | Stochastic ✓ | Weekly | 7.2% | 0.56 | -32.2% | 81.0% | 42 | -10.8% |
| 6 | EMA 20/50 Cross ✓ | Weekly | 10.5% | 0.55 | -61.5% | 43.5% | 23 | -7.5% |
| 7 | WaveTrend (8/6/4) ✓ | Daily | 9.1% | 0.53 | -50.2% | 73.8% | 172 | -8.9% |
| 8 | SMA 50/200 Cross ✓ | Daily | 9.7% | 0.52 | -66.3% | 54.5% | 33 | -8.3% |
| 9 | Rate of Change ✓ | Weekly | 8.7% | 0.52 | -48.8% | 52.9% | 157 | -9.3% |
| 10 | Williams %R ✓ | Daily | 7.9% | 0.51 | -48.7% | 70.9% | 299 | -10.1% |
| 11 | CCI ✓ | Weekly | 6.7% | 0.51 | -39.4% | 81.2% | 48 | -11.3% |
| 12 | EMA 50/200 Cross ✓ | Daily | 8.5% | 0.47 | -68.8% | 41.7% | 36 | -9.5% |
| 13 | Money Flow Index ✓ | Daily | 6.8% | 0.45 | -51.5% | 86.5% | 37 | -11.2% |
| 14 | Williams %R ✓ | Weekly | 6.2% | 0.45 | -42.5% | 73.8% | 61 | -11.8% |
✓ = held up out-of-sample. Hypothetical, costs included. See methodology.
For Sherwin-Williams (SHW), 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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