The Schaff Trend Cycle was developed by Doug Schaff in 1999 as an improvement on MACD. Schaff’s complaint: MACD’s signal-line crossovers lag actual trend changes by 1-3 bars on most timeframes. His solution: take the MACD line, run it through a Stochastic-style oscillator (twice), and produce a 0-100 scale reading that catches trend changes faster than MACD’s crossover signals.
The result is one of my favourite “underappreciated” oscillators. STC is faster than MACD without sacrificing signal quality, and the 25/75 thresholds are reliable trend-flip markers on H1 and H4.
What is the Schaff Trend Cycle?
STC starts with a standard MACD calculation. It then applies a Stochastic-style transformation to the MACD line — calculating where the current MACD value sits within its recent range. This is then smoothed and the process repeated on the smoothed result. The final output oscillates between 0 and 100.
The mathematics is more complex than RSI or pure Stochastic, but the practical interpretation is simple: STC above 75 = bullish trend; below 25 = bearish trend; transitions through these levels mark trend changes.
How STC Works on MT4
STC isn’t built into MT4. Install our custom version – see install custom indicators on MT4.
The dominant signals are the 25 and 75 zone transitions:
STC crossing from below 25 upward = trend-flip bullish. Earlier than MACD’s signal-line cross.
STC crossing from above 75 downward = trend-flip bearish.
Unlike pure OB/OS oscillators, STC’s 75 level isn’t “overbought” — it’s “trending strongly bullish.” Don’t sell at STC 75 in an uptrend any more than you’d sell at RSI 70 in a strong trend.
Key Features
- Faster trend-change detection than MACD signal-line cross
- Bounded 0-100 scale similar to RSI
- 25/75 thresholds clearly mark trend regimes
- Non-repainting once candles close
- Effective on H1, H4, Daily timeframes
- Configurable cycle and smoothing parameters
Best Settings for Schaff Trend Cycle
| Parameter | Default (Schaff) | Faster |
|---|---|---|
| Cycle Length | 10 | 5 |
| Fast Length | 23 | 12 |
| Slow Length | 50 | 26 |
| Upper Level | 75 | 75 |
| Lower Level | 25 | 25 |
Recommended starting point: Default 10/23/50 with 25/75 levels on H1.
Pros and Cons
| Pros | Cons |
|---|---|
| Faster trend-change detection than MACD | Complex math harder to understand than RSI or MACD |
| Bounded 0-100 scale, easy to interpret | Not built into MT4 – requires custom install |
| Sharp transitions between zones make signals unambiguous | 25/75 thresholds different from typical 70/30 – takes adjustment |
| Non-repainting, effective on H1+ timeframes | Less popular than MACD – sparse trading literature |
How to Install STC on MT4
Step 1: Download Schaff_Trend_Cycle.ex4 (link below).
Step 2: Drop into MQL4/Indicators via File > Open Data Folder.
Step 3: Refresh Navigator (Ctrl+N), drag STC onto chart.
Step 4: Set Cycle 10, Fast 23, Slow 50. Add 25/75 levels. Click OK.
Trading Strategy: STC Zone-Crossing Trend Flip
Setup: STC(10/23/50) with 25/75 levels on H1. 50 EMA on price for confirmation.
Buy Signal:
1. STC crosses above 25 from below
2. Price is above or just crossing above the 50 EMA
3. Enter long on the close of the cross candle
Sell Signal:
1. STC crosses below 75 from above
2. Price is below or just crossing below the 50 EMA
3. Enter short on the close
Stop Loss: Beyond the recent swing extreme.
Take Profit: Trail until STC crosses back through the opposite threshold (25 or 75).
The combined STC + EMA filter catches trend flips earlier than MACD-based strategies without sacrificing reliability.
Frequently Asked Questions
Is STC free?
Yes. Custom version available below.
Does STC repaint?
No.
STC vs MACD?
STC is faster (catches trend changes earlier) and bounded (easier to read). MACD has the histogram visualisation that STC lacks. Use STC for trend-flip identification; MACD for momentum acceleration.
Best timeframe for STC?
H1 and H4 with the EMA filter. Below H1 it produces too many false flips.
Can I use STC on MT5?
Yes. Custom version works on both platforms.
Download Schaff Trend Cycle for MT4 – Free
- Multi-timeframe display
- Zone-cross alerts
- Customisable parameters
Platform: MT4 (Build 1000+)
File type: .ex4
File size: 17 KB
Version: 2.4
Last updated: April 2026
Download the Schaff Trend Cycle – Free Instant Access
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- The non-repainting STC Indicator file (.ex4)
- Step-by-step installation guide
- Best-performing settings for day and swing trading
- The exact zone-cross rules I use in live trading
- Weekly trading insights from a developer with 16+ years of market experience
Download the Schaff Trend Cycle Indicator – Free Instant Access
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- The non-repainting Schaff Trend Cycle Indicator file (.ex4) – install in 30 seconds
- Step-by-step installation guide with chart screenshots
- Best-performing settings for scalping, day trading, and swing trading
- The exact entry and exit rules Dom uses in live trading
- Weekly trading insights from a developer with 16+ years of market experience
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Overall Rating: 4.5/5
| Category | Rating |
|---|---|
| Accuracy | 4.5/5 |
| Ease of Use | 4.4/5 |
| Features | 4.6/5 |
| Value | 4.7/5 |
Related Indicators
- MACD Indicator MT4 – The oscillator STC was designed to improve
- Stochastic Oscillator MT4 – Math basis for STC’s transformation step
- TSI Indicator MT4 – Another double-smoothed momentum tool
- Best Oscillator Indicators for MT4
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