The Schaff Trend Cycle (STC) Indicator is a powerful cyclical oscillator designed to identify trend direction changes with exceptional speed and smoothness. It is calculated by applying a stochastic process twice to a MACD line, producing a highly responsive indicator that avoids the choppiness commonly seen in traditional oscillators.

The indicator was developed by Doug Schaff, based on the idea that market trends accelerate and decelerate in repeating cycles. Its algorithm was made public in 2008 and has since become a popular tool among traders who seek early trend signals with reduced noise.

The Schaff Trend Cycle Indicator is available for both MetaTrader 4 and MetaTrader 5 platforms.

How the Indicator Works
Schaff Trend Cycle combines two well-known technical approaches:

• MACD, to measure trend momentum
• Smoothed stochastic oscillator, to identify cyclical turning points

By applying a stochastic calculation over another stochastic of the MACD line, STC produces a fast-reacting oscillator that remains smooth during strong trends.

The indicator value oscillates between 0 and 100, using two key trigger levels:

• 25 – oversold zone and potential bullish signal
• 75 – overbought zone and potential bearish signal

This structure allows traders to identify early trend reversals and momentum shifts more effectively than with traditional oscillators.

Key Features

• Fast and smooth trend cycle detection
• Reduced noise compared to classic oscillators
• Combines MACD and stochastic logic
• Clear overbought and oversold levels (25 & 75)
• Optional arrows and alerts for trade signals
• Works on all timeframes and instruments
• Compatible with MT4 and MT5

Input Parameters
Main Settings

• MAShort (default = 23)
  Period of the fast moving average used in MACD calculation. Must be less than MALong.
• MALong (default = 50)
  Period of the slow moving average used in MACD calculation.
• Cycle (default = 10)
  Length of the market cycle.
  The effective cycle length is doubled due to the double stochastic calculation.

Alerts & Visuals

• ShowArrows (default = false)
  Displays arrows on the chart when signals occur.
• UpColor / DownColor
  Colors for bullish and bearish arrows.
• ShowAlerts (default = false)
  Displays popup alerts when a signal is generated.
• SoundAlerts (default = false)
  Plays a sound alert on signals.
• EmailAlerts (default = false)
  Sends email notifications.
• PushAlerts (default = false)
  Sends push notifications to mobile devices.

Trading Strategy Example
The simplest way to trade with Schaff Trend Cycle:

• Buy when the STC line rises above 25
• Sell when the STC line falls below 75

To filter out weaker signals, Doug Schaff suggested an additional confirmation rule:

• For a buy signal:
  The candle following the trigger candle must close above the high of the trigger candle.
• For a sell signal:
  The candle following the trigger candle must close below the low of the trigger candle.

This confirmation helps reduce false signals and improves trade quality.

Conclusion
The Schaff Trend Cycle Indicator for MT4 & MT5 is an excellent tool for traders who want early trend detection without excessive noise. By combining MACD momentum with cyclical stochastic analysis, it delivers fast, smooth, and reliable signals for both trend-following and reversal strategies.

It is suitable for Forex, indices, commodities, and cryptocurrencies, and works effectively across all timeframes.

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