The best indicator for Southwest Airlines (LUV)
We backtested 382 indicators across daily, weekly and hourly charts on real Southwest Airlines (LUV) history. Here's what actually worked — risk-adjusted over the full backtest, with costs, and checked out-of-sample.
Where Southwest Airlines (LUV) stands
Computed from our own daily OHLCV history, not quoted from a third party. Moving averages use closing prices; "52-week" is the last 252 trading sessions.
Trendlines with Breaks
On the daily chart, this is the strongest risk-adjusted edge we found for Southwest Airlines (LUV) over ~46.8 years — trailing buy-and-hold by 0.2% CAGR.
Southwest Airlines (LUV) on the daily chart
The timeframe our backtest found best for this asset. The chart is live market data; the results above are hypothetical and historical.
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Best multi-indicator combo
Going long only when all 2 agree was the strongest confluence setup we found for Southwest Airlines (LUV) — trailing buy-and-hold by 8.6% CAGR, out-of-sample. Fewer, higher-conviction trades than any single indicator.
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 | Trendlines with Breaks ✓ | Daily | 12.5% | 0.59 | -58.7% | 43.2% | 95 | -0.2% |
| 2 | EMA 20/50 Cross ✓ | Daily | 12.6% | 0.58 | -66.0% | 38.7% | 93 | -0.1% |
| 3 | EMA 15/60 Cross ✓ | Daily | 12.2% | 0.57 | -70.1% | 39.8% | 98 | -0.5% |
| 4 | Inverse Fisher RSI ✓ | Weekly | 12.0% | 0.57 | -73.0% | 40.5% | 74 | -0.7% |
| 5 | Cutler's RSI ✓ | Weekly | 11.9% | 0.56 | -71.8% | 45.5% | 132 | -0.7% |
| 6 | ROC (14) ✓ | Weekly | 11.9% | 0.56 | -71.8% | 45.5% | 132 | -0.7% |
| 7 | CMO (14) ✓ | Weekly | 11.9% | 0.56 | -71.8% | 45.5% | 132 | -0.7% |
| 8 | Instantaneous Trendline ✓ | Weekly | 11.5% | 0.55 | -72.3% | 40.2% | 82 | -1.2% |
| 9 | Std Error Channel ✓ | Weekly | 10.9% | 0.55 | -57.6% | 35.2% | 88 | -1.8% |
| 10 | Premier Stochastic ✓ | Weekly | 11.3% | 0.54 | -69.4% | 45.1% | 82 | -1.4% |
| 11 | SMA 5/20 Cross ✓ | Weekly | 11.3% | 0.54 | -65.5% | 42.3% | 71 | -1.4% |
| 12 | ROC (60) ✓ | Daily | 11.2% | 0.53 | -61.6% | 36.8% | 296 | -1.5% |
| 13 | Ehlers Decycler ✓ | Weekly | 10.9% | 0.53 | -59.4% | 41.7% | 139 | -1.8% |
| 14 | Coral Trend ✓ | Weekly | 11.1% | 0.53 | -66.6% | 37.0% | 54 | -1.6% |
✓ = held up out-of-sample. Hypothetical, costs included. See methodology.
What it would take to beat buy & hold on Southwest Airlines (LUV)
24 of 719 tested setups beat buy-and-hold on Southwest Airlines (LUV) outright. Another 273 could get there with leverage they would survive — but 369 would be liquidated by their own drawdown before they caught it.
| Indicator | Beats B&H unlevered | Leverage needed | Leverage survived |
|---|---|---|---|
| Parabolic SAR | 1 | 1.08× | 2.17× |
| QQE | 1 | 1.28× | 1.53× |
| Gann HiLo Activator | 1 | 1.33× | 2.1× |
| Fisher Transform | 1 | 1.34× | 2.45× |
| Smoothed Heikin-Ashi | 1 | 1.52× | 2.34× |
| HalfTrend | 1 | 1.81× | 2.18× |
Out-of-sample, costs included. A setup is only listed if the leverage it needs is less than the leverage its own worst drawdown survives — when it isn't, no amount of leverage gets there. Volatility drag isn't modelled, so these are the optimistic case. Every indicator, ranked this way
For Southwest Airlines (LUV), Trendlines with Breaks 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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