40 Schaff Trend Cycle (STC)

The STC works by detecting trends, uses exponential moving averages (EMAs), but includes a cycle to include trends in currency sequences.

The STC indicator combines the MACD with a slow stochastic indicator and provides an early signal to recognize trends.

The STC indicator oscillates between 0 and 100. Less than 20 readings are considered oversold. Over 80 readings are considered overbought.

Schaff Trend Cycle

Figure 8.58: Schaff Trend Cycle