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Schaff Trend Cycle
An indicator that applies a stochastic-style calculation to MACD, designed to identify trend-cycle turns faster than MACD alone.
The Schaff Trend Cycle, developed by Doug Schaff, applies a stochastic-style calculation (see Kaavon's Stochastic Oscillator glossary definition) to a MACD line, rather than to raw price as the standard Stochastic Oscillator does, then smooths the result.
This layered combination is designed to identify cyclical trend turns faster than MACD alone typically would, at the cost of a more complex calculation built from two other indicators rather than a single original formula. See Kaavon's dedicated Schaff Trend Cycle article for the full construction.
Examples
- The Schaff Trend Cycle applies a Stochastic Oscillator-style calculation to MACD's own output, rather than to price directly.
- The Schaff Trend Cycle is designed specifically to react faster to cycle turns than MACD alone, which is itself already a lagging indicator.