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What is Schaff Trend Cycle Trading System?
Schaff Trend Cycle Trading System or STC indicator represents a cycle indicator for MT4 that determines the overbought and oversold trading setups. This indicator combines Stochastic and MACD indicators to provide traders with a lower noise oscillator and early forex trading signals.
This trend cycle indicator is a more optimized and advanced version of indicators that determines the overbought and oversold situations. This indicator works wonders to find out about the upcoming new trend and determines if a trader should stay in the same direction or not.
Schaff Cycle Indicator MT4 Download
The default setup of the Schaff trend cycle indicator
In the EURUSD chart, the downtrend and uptrend are represented by a straight line, which is different when compared to other such MetaTrader oscillators.
Tailored Schaff trend cycle indicator setup
This indicator has a scale with the range 0-100. The upper level is based on readings that are 75+ while the lower level is based on readings that are lower than 25 through the color white. This Schaff trend cycle is an oscillator that depicts if a security is overbought and oversold. Forex traders consider levels beyond 75 as overbought and below 25 as oversold.
Forex traders should take the BUY position as soon as the oscillator goes beyond 25 levels and hold this position and exist only if there is an opposing signal. In other cases, if this Schaff indicator crosses levels more than 75 on the downtrend, you should SELL at the opposite signal.
To validate this entry signal more, traders should take the BUY position if the candle beside the signal closes on the signal’s HIGH position. At the same time, sellers should be sure of the signal if the candle right next closes when the signal candle is Low.
Rookie Forex traders can quickly profit from the Schaff trend cycle because the signals are easy to read and spot out. If you are a more experienced forex trader, you can combine different indicator signals with Schaff. The best combination through which you can profit includes the Schaff oscillator is with oversold and overbought indicators with trend following indicators. Moreover, traders can also use multi-time frames and higher time-frames.
You can use the MACD and Schaff Trend Cycle MetaTrader indicator interchangeably. It is faster than MACD and enhances Forex traders’ profitability possibilities. To make Schaff traders more effective, you can combine it with a Stochastic trader or MACD indicator. Moreover, this indicator is free to download and install.