Schaff Trend cycle Indicator Guideline

Schaff trend cycle indicator MT4 is a charting indicator that enables forex traders to forecast market trends. Therefore, traders can use the data provided by this indicator to determine ideal buy and sell signals. Moreover, the Schaff trend cycle indicator for MT5 is based on the assumption that the market trend rises or falls in a cyclical pattern. In this course, we will discuss the Schaff trend cycle indicator for Tradingview and MetaTrader platforms in order to understand how this forex tool works.

Schaff trend cycle indicator guide

What is Schaff trend Cycle?

Schaff Trend Cycle (STC) indicator is a charting indicator commonly useful in identifying market trends and providing traders with buy and sell signals. It was developed by renowned foreign exchange trader Doug Schaff in 1999. STC indicator is an oscillator based on an assumption that states: that currency trends are accelerating and decelerating in cyclical patterns, anyhow of time frame.

How does this indicator work ?

Many traders often use the Moving Average Convergence/Divergence (MACD) charting tool, which is an indicator that traders use to identify boom in stocks price. This STC indicator is popular by the lags due to its slow signal lines. In contrast, the STC’s signal line can identify trends earlier. In fact, it frequently identifies uptrends and downtrends before the MACD indicator does this. While we calculate the STC using the same exponential moving average as the MACD. The STC adds a new period component to ameliorate accuracy and reliability. When we simply calculate the MACD using a series of moving averages. The period aspect of the STC is based on time (days for example). It is also applicable to intraday charts.

Download Schaff trend cycle indicator for MT4

The Scaff Trend Cycle indicator for MT4 is an ultramodern Metatrader 4 indicator for interpretation that indicates a situation of an overbought or oversold. It represents a mixture of MACD and Stochastic to furnish oscillators with less lag and noise than MACD or Stochastics. Therefore, this indicator is very effective in detecting the emergence of new trends beforehand. It also helps forex traders stay in the direction of the trend.

Schaff trend cycle indicator MT4
  1. The STC curve crosses and passes above the 75 levels.
  2. This can indicate a start of a downtrend.
  3. The price dropped by 13.8375 bps.
    In this case, the market is in an overbought condition.

Download Schaff trend cycle indicator for MT5

The Schaff Trend Cycle indicator for MT5  is a modern Metatrader 5 indicator that indicates a situation of an overbought or oversold.

Schaff trend cycle indicator MT5

The STC Indicator is one of the most effective ways to inform investors of market trends, overbought and oversold conditions, and buy and sell positions.
The STC indicator uses two thresholds of 25 and 75.Consider the chart represented above, if the STC curve crosses the first threshold of 25, it usually indicates that the market is in an uptrend. However, when the STC breaks above the 75 levels, it usually indicates that the trend is getting strong in either direction highs or lows. Also, when the STC is straight above 75, it is a signal of an overbought. Conversely, when the line is below 25, it indicates that the stock is oversold.

Download Schaff trend cycle indicator for Tradingview

The Schaff trend cycle indicator Tradingview takes into account both time and moving averages, therefore it produces faster and more accurate signals than previous indicators (such as MACD). However, the STC indicator is a prospective indicator. Regarding the following Tradingview chart, we have an uptrend when the STC curve crosses the threshold of the 25 levels. And a downtrend when it crosses the threshold of 75 levels.

Schaff trend cycle indicator Tradingview rev

Conclusion

The Schaff Trend Cycle indicator is an efficient workaround for MACD on Metatrader. It eliminates the MACD offset while enhancing the profitability of forex traders. The combination of MACD and stochastics in a single enhances the effectiveness of the Schaff indicator. In addition, traders can download the indicator free of charge and install it with ease.