Key points

  1. Golden crosses, MACD buy signals and crossing above the 200-day line did about as well as buying on any day, for every group.
  2. "Buy when above the 200-day line" did not work either. For individual stocks, days below the line were followed by slightly better returns.
  3. What held up was oversold (RSI 30 or below). For Japanese value stocks after they were picked, three-month returns beat the average by +2.7%, and were positive 68% of the time (61% for any day).
  4. For gold and silver no signal pointed the same way in both halves of the period. Picking the day made no clear difference.

How we tested

Buy at the close on the day of the signal and measure the return one, three and six months later (20, 60 and 120 trading days). The figures are the difference from the average return for buying on any day, same stock, same period. Repeat signals within 20 trading days count once. Splitting the period in two checks whether a result is chance.

Daily prices from Yahoo Finance (adjusted for dividends and splits), to 28 Sep 2026.

At a glance: three-month difference by signal and group

SignalGold and silverGold minersJapanese value stocksJapanese stocks overallUS stocks
Above the 200-day line (every day)+0.5%−0.8%−0.4%−0.1%−0.6%
Below the 200-day line (every day)−0.7%+0.9%+0.7%+0.1%+1.4%
Crosses above the 200-day line−2.0%−0.7%+0.3%−0.2%−0.3%
Golden cross (50/200-day)−1.5%−3.2%+0.3%+0.3%−0.6%
Golden cross (25/75-day)−1.8%−2.8%+0.1%−0.1%−0.7%
MACD buy signal (all)+0.4%−0.5%−0.1%+0.1%−0.1%
MACD buy signal below zero−0.1%+0.9%+0.2%+0.2%+0.6%
MACD buy signal above the 200-day line+0.7%−2.2%−0.4%0.0%−0.8%
Dip in an uptrend (RSI 40 or below, above the 200-day line)+1.4%−0.7%0.0%−0.3%+0.1%
Oversold (RSI 30 or below)−0.7%+3.8%+2.7%+3.2%+1.7%
30% or more below the 52-week high−0.8%+1.4%+1.7%+1.8%+4.7%
Crosses the 50-day line after a 20% fall−3.3%−0.7%0.0%−0.6%+1.1%
Overheated (RSI 75 or above)+1.2%−1.9%−1.4%−0.4%−1.6%
Overheated (1.3x the 200-day line)+7.1%+0.9%−3.0%−2.0%+0.2%
Overheated (either)+1.4%+0.3%−1.7%−1.0%−1.0%

Difference from buying on any day. Boxed: the same direction in both halves of the period (downwards for overheated) and at least 0.5%. Shaded rows are the two signals this site uses.

Three-month difference by signal

Three-month return after each signal minus the average for any day (%)Bars to the right mean buying on the signal did better; near zero means no difference. Blue bars are the two this site uses (oversold and overheated).

Full figures by group

Tap to open: one- and six-month differences, how often prices rose, split periods and counts.

Gold and silverGold and silver futures and the gold ETF (GC=F, GLD, SI=F) (3, All years).
Signal1 month3 months6 monthsUp after 3 months (normally 56%)Stocks pointing the same way2011–18: 3 months2019 on: 3 monthsCount
Above the 200-day line (every day)+0.1%+0.5%+1.3%56%—−0.7%−0.2%6,854
Below the 200-day line (every day)−0.1%−0.7%−1.8%56%—+0.5%+0.6%4,836
Crosses above the 200-day line−0.7%−2.0%−3.1%46%—−2.5%−1.0%108
Golden cross (50/200-day)+0.2%−1.5%−1.4%39%—−3.2%−1.2%33
Golden cross (25/75-day)−0.8%−1.8%−2.5%45%—−2.4%−0.4%83
MACD buy signal (all)−0.2%+0.4%+0.9%60%—+0.2%+0.4%316
MACD buy signal below zero−0.2%−0.1%−0.8%60%—+0.2%+0.2%211
MACD buy signal above the 200-day line−0.2%+0.7%+2.2%59%—−0.2%−0.2%190
Dip in an uptrend (RSI 40 or below, above the 200-day line)+1.3%+1.4%−1.0%60%—+3.1%−0.8%87
Oversold (RSI 30 or below)+0.8%−0.7%−1.4%61%—−0.2%+0.9%85
30% or more below the 52-week high+1.7%−0.8%−1.8%51%—+2.5%−4.1%37
Crosses the 50-day line after a 20% fall−1.2%−3.3%−5.1%43%—−2.3%−2.0%53
Overheated (RSI 75 or above)+0.9%+1.2%+1.2%61%—−1.1%+1.4%67
Overheated (1.3x the 200-day line)+1.1%+7.1%−0.5%55%—+12.8%+3.3%22
Overheated (either)+0.3%+1.4%+1.2%58%—+1.6%0.0%79
Gold minersGDX, GDXJ and the main gold miners and royalty companies (20, All years).
Signal1 month3 months6 monthsUp after 3 months (normally 53%)Stocks pointing the same way2011–18: 3 months2019 on: 3 monthsCount
Above the 200-day line (every day)−0.5%−0.8%−0.2%51%25%−2.7%−1.4%39,462
Below the 200-day line (every day)+0.6%+0.9%+0.2%55%75%+1.9%+2.8%34,231
Crosses above the 200-day line−0.1%−0.7%+0.2%49%25%−0.5%−0.7%703
Golden cross (50/200-day)−1.9%−3.2%−3.7%50%15%−2.4%−3.9%235
Golden cross (25/75-day)+0.1%−2.8%−1.1%46%5%−2.9%−2.2%565
MACD buy signal (all)−0.3%−0.5%−0.1%53%15%0.0%−1.2%1,990
MACD buy signal below zero+0.9%+0.9%+1.1%56%70%+1.4%+0.9%1,296
MACD buy signal above the 200-day line−1.9%−2.2%−0.9%50%10%−3.7%−3.2%1,103
Dip in an uptrend (RSI 40 or below, above the 200-day line)+0.1%−0.7%−0.3%50%45%−2.8%−1.5%526
Oversold (RSI 30 or below)+3.6%+3.8%+3.3%57%85%+3.7%+6.3%566
30% or more below the 52-week high+1.2%+1.4%+1.4%54%75%+2.9%+2.7%1,216
Crosses the 50-day line after a 20% fall0.0%−0.7%0.0%51%40%−1.2%+0.7%1,061
Overheated (RSI 75 or above)−1.1%−1.9%+0.3%47%70%−0.7%−4.6%359
Overheated (1.3x the 200-day line)−0.1%+0.9%+0.6%54%40%+1.1%−2.3%645
Overheated (either)−0.5%+0.3%+0.5%53%45%+0.5%−2.5%810
Japanese value stocksCompanies that ranked cheap for their earnings power in their 2021–22 annual reports, with no warning signs (488, After selection (Jul 2022 on)).
Signal1 month3 months6 monthsUp after 3 months (normally 61%)Stocks pointing the same wayBefore selection, 2011–18: 3 monthsBefore selection, 2019–Jun 2022: 3 monthsCount
Above the 200-day line (every day)−0.2%−0.4%−0.8%61%36%+0.4%−1.9%318,212
Below the 200-day line (every day)+0.4%+0.7%+1.6%62%64%−0.7%+2.0%156,430
Crosses above the 200-day line0.0%+0.3%+0.7%61%50%−0.4%+0.2%4,340
Golden cross (50/200-day)+0.2%+0.3%+1.6%61%48%+0.3%+0.1%1,367
Golden cross (25/75-day)−0.4%+0.1%+0.2%61%53%+0.2%0.0%3,393
MACD buy signal (all)−0.3%−0.1%0.0%61%47%+0.2%+0.1%12,903
MACD buy signal below zero−0.2%+0.2%+0.8%61%55%−0.7%+1.4%7,407
MACD buy signal above the 200-day line−0.4%−0.4%−0.7%60%42%+0.7%−1.9%8,826
Dip in an uptrend (RSI 40 or below, above the 200-day line)+0.7%0.0%+0.4%62%48%−0.1%−2.1%3,714
Oversold (RSI 30 or below)+3.1%+2.7%+4.8%68%72%+0.7%+3.2%2,694
30% or more below the 52-week high+1.7%+1.7%+2.3%58%69%−0.7%+3.4%2,611
Crosses the 50-day line after a 20% fall−0.3%0.0%+0.6%58%49%−1.4%+0.4%3,838
Overheated (RSI 75 or above)−0.6%−1.4%−1.7%59%68%+1.4%−3.1%3,139
Overheated (1.3x the 200-day line)−1.3%−3.0%−5.6%53%77%−0.7%−6.9%2,282
Overheated (either)−0.6%−1.7%−2.9%57%75%+0.2%−4.4%4,420
Japanese stocks overall400 listed companies picked at random (381, All years).
Signal1 month3 months6 monthsUp after 3 months (normally 54%)Stocks pointing the same way2011–18: 3 months2019 on: 3 monthsCount
Above the 200-day line (every day)−0.1%−0.1%−0.3%54%44%−0.1%−0.5%710,588
Below the 200-day line (every day)+0.1%+0.1%+0.3%54%56%+0.2%+0.6%550,488
Crosses above the 200-day line−0.2%−0.2%+0.3%53%45%0.0%−0.2%12,383
Golden cross (50/200-day)+0.1%+0.3%+0.3%55%51%+0.9%−0.2%3,892
Golden cross (25/75-day)−0.3%−0.1%−0.4%52%48%+0.2%−0.3%9,542
MACD buy signal (all)0.0%+0.1%−0.1%54%51%+0.2%0.0%33,495
MACD buy signal below zero0.0%+0.2%+0.2%55%56%+0.2%+0.4%21,219
MACD buy signal above the 200-day line0.0%0.0%−0.3%54%46%+0.3%−0.6%19,582
Dip in an uptrend (RSI 40 or below, above the 200-day line)+0.1%−0.3%−0.1%56%46%−0.4%−0.4%8,700
Oversold (RSI 30 or below)+3.2%+3.2%+3.5%59%68%+4.9%+2.0%9,197
30% or more below the 52-week high+1.6%+1.8%+2.8%52%62%+2.9%+1.2%15,649
Crosses the 50-day line after a 20% fall−0.3%−0.6%−0.2%50%38%−0.7%−0.4%14,421
Overheated (RSI 75 or above)−0.2%−0.4%−0.5%49%60%0.0%−1.7%7,773
Overheated (1.3x the 200-day line)−0.8%−2.0%−3.8%45%70%−3.7%−1.9%6,475
Overheated (either)−0.4%−1.0%−1.7%48%64%−1.6%−1.6%11,506
US stocks200 companies picked at random from today's S&P 500 (198, All years).
Signal1 month3 months6 monthsUp after 3 months (normally 63%)Stocks pointing the same way2011–18: 3 months2019 on: 3 monthsCount
Above the 200-day line (every day)−0.3%−0.6%−0.8%63%19%−0.6%−0.8%500,217
Below the 200-day line (every day)+0.6%+1.4%+1.7%64%81%+1.6%+1.5%229,276
Crosses above the 200-day line−0.1%−0.3%+0.2%62%48%+0.2%−0.5%6,168
Golden cross (50/200-day)−0.2%−0.6%+0.1%61%44%−0.4%−0.7%2,033
Golden cross (25/75-day)−0.7%−0.7%−0.9%61%35%−0.3%−1.1%5,329
MACD buy signal (all)0.0%−0.1%−0.1%63%43%−0.1%−0.1%19,346
MACD buy signal below zero+0.4%+0.6%+0.7%64%73%+0.5%+0.9%10,756
MACD buy signal above the 200-day line−0.4%−0.8%−0.8%63%26%−0.7%−1.0%13,470
Dip in an uptrend (RSI 40 or below, above the 200-day line)+0.4%+0.1%−0.2%63%49%0.0%+0.2%6,590
Oversold (RSI 30 or below)+0.5%+1.7%+1.6%65%77%+1.3%+2.5%4,582
30% or more below the 52-week high+2.0%+4.7%+6.8%67%87%+5.0%+4.9%3,957
Crosses the 50-day line after a 20% fall+0.9%+1.1%+2.2%63%65%+2.0%+0.7%4,817
Overheated (RSI 75 or above)−0.9%−1.6%−2.1%60%76%−1.3%−2.2%4,133
Overheated (1.3x the 200-day line)−0.4%+0.2%+1.1%61%61%−2.2%+0.5%2,191
Overheated (either)−0.7%−1.0%−0.8%60%74%−1.4%−1.1%5,448

Stocks pointing the same way: the share of stocks whose own average went the same way as the table (downwards for overheated). It shows whether a result comes from a few stocks or many. Daily states (above/below the 200-day line) count every day.

What the test cannot tell you

  1. Only survivors

    Yahoo has no data for delisted companies, so buying after a fall looks better than it was: the companies that kept falling are missing. The bias is largest for US stocks (today's S&P 500 members are the winners). It is smallest for the Japanese value stocks picked in 2022, from July 2022 on.

  2. The edge is small

    The oversold edge is about 2–4% over three months on average: slightly better odds, with no lower chance of a fall of 20% or more. Costs are not included.

  3. Fifteen years of the past

    Prices since 2011 cover low rates and the rate rises, but the future may differ. Widely known signals can stop working.

  4. Not the site's own list

    TOB candidates were tested on Japanese stocks overall and value stocks on Japanese value stocks picked in 2022. Today's lists may behave differently.

Updated 29 Sep 2026 02:37 JST · closing prices on 28 Sep 2026