An oscillator that runs MACD through a double stochastic cycle process, turning it into a smooth, leading 0–100 trend cycle. Crosses of 25/75 catch trends earlier than MACD.
The Schaff Trend Cycle (STC) is an oscillator developed by currency trader Doug Schaff in the 1990s.
The idea grew out of a simple frustration. MACD captures direction well, but reacts slowly. Stochastics react quickly, but pin to the edges and become useless in trending markets.
Schaff combined the two. He treated the MACD value as if it were a "price," then ran a double stochastic cycle process over it. The result keeps the directional sense of MACD while being converted into a smooth 0–100 oscillation, like a stochastic.
What comes out is a curve that follows trends faithfully yet signals turns a step earlier than MACD. It has been especially popular in markets like FX, where clear trends and ranges alternate.
How to Read
FX:EURUSD
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