SCHAFF TREND CYCLE INDICATOR MT5
Schaff Trend Cycle MT5 Indicator with Overbought and Oversold levels. Reduces lag and provides early trend signals.
- The Schaff Trend Cycle MT5 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 MT5 Indicator Trading Signals – Default Setup
The EURUSD daily chart above shows the indicator displayed in a separate window. It displays uptrend and downtrend cycles as a single green and orange line compared to other Metatrader oscillators.
Schaff Trend Cycle MT5 Indicator Customized Trading Setup
- The EURUSD H1 chart above is set up to display the indicator levels. The indicator is an oscillator with values from 0 to 100. The indicator line turns green when it moves up, and vice versa, when it moves down, it turns orange.
You can add a Top Level at 75 and a Bottom Level at 25 in the levels tab. Since the Schaff Trend Cycle indicator is an oscillator, it shows overbought and oversold levels. Forex traders regard an oscillator value above 75 as overbought; on the contrary, values below 25 are considered oversold.
- 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.
