SCHAFF TREND CYCLE INDICATOR MT4

Schaff Trend Cycle MT4 Indicator with Overbought and Oversold levels. Reduces lag and provides early trend signals.

• The Schaff Trend Cycle MT4 Indicator is an advanced version of the overbought and oversold indicator. It combines MACD and Stochastic to provide an oscillator with less noise,and reduced lag than the MACD or Stochastic indicator, while providing early trading signals to forex traders. As a result, the indicator is very effective in identifying the beginning of new trends early while helping the forex trader to remain in the trend direction.

Schaff Trend Cycle MT4 Indicator Trading Signals – Default Setup

The EURUSD Daily chart shows the indicator, displayed in a separate window in DarkOrchid color. The indicator displays the Uptrend and Downtrend trend cycles as a single straight line compared to other Metatrader oscillators.

Schaff Trend Cycle MT4 Indicator Customized Trading Setup

• The above EURUSD Daily chart is customized to display the indicator levels. The indicator is an oscillator with values between 0 and 100. It adds the Upper level at 75 and the lower level at 25 in WHITE color. As the Schaff Trend Cycle Indicator is an oscillator, it shows the overbought and oversold levels. Forex traders consider the oscillator value above 75 as overbought; oppositely, the values below 25 are regarded as oversold.

Forex traders can enter a BUY position if the oscillator crosses over the 25 levels to the upside and continue to hold the position to exit at an opposite signal. Conversely, suppose the Schaff Trend Cycle Indicator crosses over the 75 levels to the downside. In that case, traders can enter a SELL position and exit at the opposite signal.

• To further confirm the entry signal, traders can enter a BUY position if the candle next to the signal candle closes above the signal candle’s HIGH. On the other hand, SELLERS can confirm the signal if the candle next to the signal candle closes below the signal candle’s LOW.

New forex traders can benefit from the trading signals as the Schaff Trend Cycle Indicator signals are easy to identify and apply. However, advanced forex traders can combine the signals from the Schaff indicator with other trend-following indicators. This combination of an overbought and oversold oscillator with a trend following indicator will provide profitable trading strategies. Furthermore, traders can apply the indicator in higher time frames and trade using multi-time frames.

Conclusion

• The Schaff Trend Cycle Metatrader Indicator is an effective alternative for MACD. It removes the lag of MACD while increasing the forex traders’ profitability. The combination of MACD and Stochastic within a single indicator increases the efficiency of the Schaff indicator.