stelaraX - Schaff Trend Cycle

stelaraX – Schaff Trend Cycle

stelaraX – Schaff Trend Cycle is a hybrid momentum and trend indicator designed to identify cyclical turning points within trending markets. By combining MACD logic with stochastic normalization, it reacts faster to trend changes than traditional MACD-based indicators.

This indicator is part of the stelaraX ecosystem, focused on clean technical analysis and AI-supported chart evaluation
stelarax.com

Core logic

The Schaff Trend Cycle (STC) applies stochastic calculations to a MACD-derived series and smooths the result iteratively to isolate dominant market cycles.

Key principles:

* MACD captures underlying trend momentum
* stochastic normalization converts momentum into cycle form
* iterative smoothing reduces noise and lag
* values oscillate between 0 and 100
* high values indicate bullish cycle dominance
* low values indicate bearish cycle dominance

The STC is designed to signal trend transitions earlier than classic momentum indicators.

Visualization

The script plots:

* the Schaff Trend Cycle line in a separate indicator pane
* upper and lower threshold levels highlighting cycle extremes
* a filled background zone emphasizing overbought and oversold regions
* clean line rendering for clear cycle interpretation

This layout makes cyclical momentum shifts and trend transitions easy to spot.

Use case

This indicator is intended for:

* identifying trend cycle turning points
* detecting early trend reversals
* confirming trend continuation phases
* timing entries and exits within trends
* supporting swing trading and momentum-based strategies

It performs especially well when combined with higher-timeframe trend filters or AI-assisted chart analysis.

Disclaimer

This indicator is provided for educational and technical analysis purposes only and does not constitute financial advice or trading recommendations. All trading decisions and risk management remain the responsibility of the user.