Try Pocket Option Quick Sign up and get extra rewards
Schaff Trend Cycle Indicator is a technical analysis tool that is used to spot upcoming trends and reversals. This indicator uses a cyclic movement hence It is called Schaff Trend Cycle Indicator. In this article, I will cover everything about Schaff Trend Cycle Indicator on Pocket Option.
Understanding Schaff Trend Cycle Indicator
Schaff Trend Cycle Indicator (STC) is a trend indicator that oscillates around overbought and oversold levels to generate buy and sell opportunities. This indicator was developed by Doug Schaff his main goal was to eliminate the drawbacks of the Stochastic Oscillator and MACD Indicator. This indicator is made from the composition of both the Stochastic Oscillator and MACD Indicator. This indicator uses a Moving average line that oscillates around the overbought and oversold levels.
When you see the moving average line in a horizontal form below line 25 you can say that the market is at an oversold level and vice versa, when you see the moving average line in a horizontal form above line 75 you can say the market is at an overbought level.
Why Schaff Trend Cycle Indicator
If you have ever used MACD Indicator or Stochastic Indicator you must have seen a certain lag in both these indicators. Multiple times these indicators will delay the perfect buying and selling signals and Therefore, Traders use Schaff Trend Cycle Indicator to eliminate all those drawbacks and limitations of the two indicators.
This indicator uses a cyclic movement which helps traders to spot highly accurate trading opportunities and gives you a very high-quality signal.
Schaff Trend Cycle Indicator Setup in Pocket Option
Schaff Trend Cycle Indicator is a free-to-use indicator and therefore you can access this indicator even in the Pocket Option trading account. Firstly, open your trading chart and click on the indicator button at the top. Lastly, make the necessary amendments such as line colour, visibility of the line & more. and once you are done click apply.
Spot Trading opportunities with Schaff Trend Cycle Indicator on Pocket Option?
Finding trading opportunities with Schaff Trend Cycle Indicator in Pocket Option is very easy. As, I said above the moving average line in the indicator oscillates around line 25 – 75. When the moving average line forms a horizontal line below line 25 it signals an upcoming bullish trend and vice versa, when the moving average line forms a horizontal line above line 75 it signals an upcoming bearish trend.
Read Next: Identifying easy trading opportunities with Bollinger Bands Width on Pocket Option
In case You don’t know
MACD and Stochastic Indicator is one of the most popular family members of trend indicators. MACD or you can call it Moving Average Convergence and Divergence is a trend indicator that is made from the composition of a Moving average line and Histogram. The main components of this indicator are the Signal line, MACD line & Histogram line.
Talking about the Stochastic Indicator, It is a trend indicator that is made from the composition of two moving averages name %K and %D that oscillates around the overbought and oversold level. When the two moving averages lines intersect each other it generates buying and selling opportunities.
Read Next: Two effective ways of using Envelope Indicator on Pocket Option
