SchaffTrendCycle indicator
- Indicators
- Version: 1.0
What is Schaff Trend Cycle?
The Schaff Trend Cycle (STC) is an oscillator-type indicator designed to detect trend reversals in a timely manner. Compared to traditional indicators like moving averages or MACD, it combines cyclical patterns with momentum to more clearly identify the beginning and end of trends.
Main Features
- Clear trend reversal signals: The cycle line rises in an uptrend and falls in a downtrend.
- Noise reduction in ranging markets: Smoothing based on cyclical timing helps filter out short-term fluctuations.
- Flexible parameter adjustment: Easily customizable for beginners and advanced traders by tuning periods and smoothing settings.
Calculation Logic Overview
- Momentum Calculation
Short-term and long-term momentum are calculated based on price changes over the specified period. - Cyclic Smoothing
A double smoothing process is applied to extract cyclical movements from the momentum. - Normalization
The result is normalized to a 0–100 range and displayed as an oscillator. - Signal Generation
Buy/sell signals are typically derived when the STC line crosses above 25 or below 75.
Input Parameters
- CyclePeriods – The main period used for momentum calculation. Default: 10
- FastMA – Short-term moving average period for smoothing. Default: 3
- SlowMA – Long-term moving average period for smoothing. Default: 3
- OverboughtLevel – Upper threshold for identifying overbought conditions. Default: 75
- OversoldLevel – Lower threshold for identifying oversold conditions. Default: 25
How to Install the Indicator
- Search for “Schaff Trend Cycle” on the MQL5 Market page.
- After downloading, restart your MT4 or MT5 terminal.
- Open the “Navigator” window, find the indicator under “Custom Indicators,” and drag it onto your chart.
How to Use
- Trend Detection
STC line crossing above 25 → Possible start of an uptrend
STC line crossing below 75 → Possible start of a downtrend - Filtering
Combine with other trend indicators (e.g., Moving Averages, ADX) for higher accuracy. - Alert Option
Alerts can be enabled to notify you when signals are triggered.
Notes
- False signals may occur during sideways markets. Proper risk management is recommended.
- Default settings are optimized for general market conditions but should be adjusted to fit your trading strategy.
- This indicator is intended as a supporting tool for trend analysis, not for standalone trading decisions.
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