detects up and down trends long before the . It does this by using the same exponential moving averages (EMAs), but adds a cycle component to factor instrument cycle trends. gives more accuracy and reliability than the .
More info: http://www.investopedia.com/articles/forex/10/schaff-trend-cycle-indicator.asp
Feel free to "Make mine" this chart and use the indicator in your charts. Appreciate any feedback on how effective this is for your instrument (I have tested this only with ).
For people trading BTC:
Try 3/10 or 9/30 for (fastLength/slowLength). They seem to catch the cycles better than the defaults. :)
// // @author LazyBear // If you use modify / use this code, appreciate if you could drop me a note. // study(title="Schaff Trend Cycle [LazyBear]", shorttitle="STC_LB", overlay=true) length=input(10) fastLength=input(23) slowLength=input(50) macd(source, fastLength, slowLength) => fastMA = ema(source, fastLength) slowMA = ema(source, slowLength) macd = fastMA - slowMA macd stc(length, fastLength, slowLength) => factor=input(0.5) m = macd(close,fastLength,slowLength) v1 = lowest(m, length) v2 = highest(m, length) - v1 f1 = (v2 > 0 ? ((m - v1) / v2) * 100 : nz(f1)) pf = (na(pf) ? f1 : pf + (factor * (f1 - pf))) v3 = lowest(pf, length) v4 = highest(pf, length) - v3 f2 = (v4 > 0 ? ((pf - v3) / v4) * 100 : nz(f2)) pff = (na(pff) ? f2 : pff + (factor * (f2 - pff))) pff plot(stc(length,fastLength,slowLength),color=red, title="Schaff_TC") // // Uncomment the lines below if you want the center region // // ul=plot(25) // ll=plot(75) // fill(ul,ll,color=red)
STC uses a fast Stochastics formula that includes the original %fastK and a smoothed variation of the %fastD. It runs this modified stochastic twice. Step1 runs it on MACD. Generated %fastD is the input for step2. Output of step2 (STC) is actually a %fastD of %fastD.
Smoothing constant ("factor"), MACD fastLength/slowLengths are all exposed for customization via the options page.