Trends/Relative strength, cycles and structure

Schaff trend cycle

A 0 to 100 oscillator made by running a stochastic calculation on MACD, so it moves faster.

Relative strength, cycles and structureBest on 6M, 1YAlso called STC

Illustration of the Schaff trend cycle shape. It is a sketch, not real price data.

What it shows

Doug Schaff's STC takes the MACD line and applies the stochastic formula to it twice, with smoothing between. The result moves between 0 and 100 like a stochastic, but follows the MACD's cycles.

The aim is to get a faster response than MACD while staying smoother than a plain stochastic.

How we find it

The same code that draws it on your chart follows these steps, with the same result every time.

Compute the MACD line (23, 50).
Apply the stochastic formula to MACD over 10 bars and smooth.
Apply it again and smooth.
Plot with lines at 25 and 75.

Starting values: Fast 23; Slow 50; Cycle 10; Lines 25 / 75. These are proposed and will be tuned on real price data before launch.

How to read it

The panel shows STC from 0 to 100.
It swings between the lines.
Dashed lines mark 25 and 75.

Status labels you may see

Label	What it means
Above 75	STC above 75.
Middle	Between 25 and 75.
Below 25	STC below 25.

What cancels it

Nothing cancels it.

What traders check next

Time at extremes.
Price trend.
MACD level.

Limits

Complex with many settings.
Not widely researched.
Spends time at extremes.

Try it in forecastviz

Open any ticker and choose Relative strength, cycles and structure → Schaff trend cycle in the left menu.
Switch between 6M, 1Y to see how the picture changes.
Compare with MACD and Stochastic oscillator on the same chart.

Open on a ticker

Questions

Why combine MACD and stochastic?

To mix trend and cycle ideas.

Is it better than MACD?

We make no claim.