Schaff Trend Cycle Indicator

Description

An improved form of the overbought and oversold indicator is the Schaff Trend Cycle Indicator MT4. It gives forex traders early trading indications by combining the MACD and stochastic indicators to create an oscillator with less noise and latency than either one alone. Consequently, the indicator is highly successful in helping the forex trader stay on the trend while spotting the onset of new trends early.

Default Configuration for Schaff Trend Cycle MT4 Indicator Trading Signals

Default Configuration for Schaff Trend Cycle MT4 Indicator Trading Signals

The Schaff Trend Cycle Indicator is shown in a separate window in the DarkOrchid color on the EURUSD Daily chart above. In contrast to other Metatrader oscillators, the indicator shows the Uptrend and Downtrend trend cycles as a single straight line.

Customized Trading Setup using Schaff Trend Cycle MT4 Indicator

The indicator levels are displayed in a customized version of the EURUSD Daily chart above. An oscillator with values ranging from 0 to 100 serves as the indicator. In white, it adds the upper level at 75 and the bottom level at 25. The Schaff Trend Cycle Indicator displays the overbought and oversold levels because it is an oscillator. An oscillator number above 75 is viewed by forex traders as overbought, while a value below 25 is viewed as oversold.

If the oscillator rises above the 25 levels to the upside, forex traders can enter a BUY position and hold it until the opposite signal occurs. On the other hand, let’s say the Schaff Trend Cycle Indicator crosses below the 75 levels. Traders can then enter a SELL position and exit at the opposite signal in that scenario.

If the candle next to the signal candle closes above the signal candle’s HIGH, traders can execute a BUY position to further validate the entry signal. However, if the candle adjacent to the signal candle closes below the signal candle’s LOW, SELLERS can verify the signal.

The Schaff Trend Cycle Indicator signals are simple to recognize and use, making them advantageous for novice forex traders. The Schaff indicator’s indications, however, can be combined with those of other trend-following indicators by experienced forex traders. Profitable trading methods will be produced by combining an overbought and oversold oscillator with a trend following indicator. Additionally, traders can use multi-time frames and apply the indication to higher time frames.

Conclusion

An efficient substitute for MACD is the Schaff Trend Cycle Indicator. It increases the profitability of forex traders while eliminating the MACD lag. The Schaff indicator’s efficacy is increased when MACD and stochastic are combined into a single indicator. Additionally, traders can quickly install the indicator and download it for free.