REA STC (Schaff Trend Cycle)

The REA_STC is the so-called Shaff Trend Cycle of REAVOLUTION.

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The Schaff Trend Cycle (STC) is an oscillator indicator that can help you identify positive and negative trends, identify points of entry and exit and provide accurate signals to enter the market. What is so special about it and why use it in trading? First of all, it is very easy to understand. The Schaff Trend Cycle is basically the most typical of the oscillators enriched with the element of the cycle. Second, it was developed as a "better and more accurate version" of the MACD (at least according to its creator).

The Schaff Trend Cycle works similarly to the MACD. It also includes the notion of cycles, crucial for global financial markets, to facilitate the identification of positive and negative trends.

Here’s how to interpret his readings. There are two thresholds: 25 and 75. When the indicator is above the line of 25, an upward trend is observed. When the indicator crosses down the 75 line, it is believed that a bearish trend is about to occur. When the indicator is between the lines of 25 and 75, the trend is going to develop in one of two directions.

When the indicator turns into a straight line (which only occurs at its highest and lowest points), the asset is in overbought - when the indicator is over the 75 line, or in oversold when it is below the 25 line. In both cases a reversal of the trend is expected, even if no temporal indication is given.

This Our version of the Shaff Trend Cycle Indicator makes it even easier to read the conditions by coloring the line directly Green when there are Buy and Red conditions when there are Sell conditions.