Schaff Trend Cycle Indicator Explained

The Schaff Trend Cycle (STC), by Doug Schaff, starts with a MACD and runs it through two rounds of stochastic normalization. The result cycles between 0 and 100 and turns notably earlier than MACD itself — trend timing with cycle-tool responsiveness.

How It Works

• A MACD line is computed, then stochastically normalized twice.
• The double normalization compresses lag and bounds the output 0–100.
• Readings race to the extremes and flatten there while trends run.

How to Trade It

The standard rules: buy when STC turns up from below 25, sell/exit when it turns down from above 75. The flat-at-extreme behavior means 'STC pinned above 75' is itself a trend-running signal — don't fade it just for being high.

Building It in Setup.Cash

Add Schaff Trend Cycle in the strategy builder — the length input controls its sensitivity — and use its value in any entry, exit, or filter condition. You can also combine it with other tools in the Indicators Lab or via the AI indicator generator. Compare with TRIX and TSI, the other refined-MACD relatives. For the full category overview, see the advanced momentum library guide.

Momentum signals are timing tools — combine them with a trend or regime filter and backtest the exact rules before going live.