What it is
The Schaff Trend Cycle (STC) is a powerful oscillator developed by Doug Schaff. It combines the accuracy of MACD with the smoothing properties of Stochastic to identify trend cycles.
How it works
STC operates by calculating a MACD line, then applying a Stochastic calculation to that line. This double-smoothing process helps filter out market noise and provides a clearer view of trend momentum.
Trading signals
- Buy: When the indicator rises from the oversold level (0-25).
- Sell: When it drops from the overbought level (75-100).
Basic settings
The default settings are 10, 23, and 50. These values define the cycles for the internal MACD and Stochastic calculations. Adjusting these parameters can help fine-tune the indicator for different timeframes. This content is for educational purposes only, not financial advice.
