Schaff Trend Cycle Indicator Download for MetaTrader 5 - Free - [Trading Search]

Schaff Trend Cycle Indicator is an oscillator in MetaTrader 5 that checks overbought and oversold points on the price chart. This indicator combines MACD (Moving Average Convergence Divergence) and Stochastic Oscillator .

The tool identifies values ​​below 25 as oversold territory and values ​​above 75 as overbought territory, and displays fluctuations between these ranges with a purple curve. Traders can use this oscillator in conjunction with other tools and strategies to find the best entry points for trades.

Indicator Table

Indicators at a glance

The Schaff Trend Cycle Indicator is an advanced oscillator designed based on two popular indicators, MACD and Stochastic , using these tools to perform calculations.

Traders can quickly identify market trends with this indicator. Furthermore, the MetaTrader5 indicator provides key signals when price reaches overbought or oversold zones .

The oversold zone is at the 25 level , and the overbought zone is at the 75 level , alerting traders to potential market trend reversals .

In the image below, the chart Dow Jones Index with Symbol [US30] is displayed on the 30-minute time frame. On April 19, the indicator reached oversold territory, and when the oscillator curve crossed the 25 level , a Bullish signal and buy positions were issued.

Furthermore, on April 23, the price reached the overbought zone and the oscillation curve crossed below the 75 level , at which point a Bearish signal and sell positions were issued.

Bullish signal conditions for the indicator (bullish settings)

The image below shows the NASDAQ index chart with sign (NAS100) on a 5-minute time frame. At points A and B, the indicator reaches the oversold zone and cuts off the 25 line upward , issuing an Uptrend signal. In this case, one can look for buying opportunities with the help of: bullish candlestick patterns or other technical analysis tools.

Bearish signal conditions for the indicator (Bearish settings)

The image below shows the S&P 500 index chart with sign (US500) on the 4-hour time frame. The indicator reaches the overbought zone in the indicated area and cuts downwards to the 75 line, issuing a Bearish signal. With the help of bearish candlestick patterns or other technical analysis tools, one can look for selling opportunities.

Schaff Trend Cycle Indicator Settings

• Schaff period : The indicator period is set to 10;
• Fast EMA period : The fast moving average period is 23;
• Slow EMA period : The slow moving average period is 50.

Explanation : To create 25 and 75 lines on the indicator as shown in the image below, you can add the required levels in the (Levels) section.

Conclusion

Using the overbought and oversold oscillators alone can lead to high risks in trading. This Schaff Trend Cycle (STC) indicator filters out small fluctuations and false signals by combining it with two other oscillators. However, it is recommended to use it with other analysis methods such as Classic Analysis, Price Action , etc.