Schaff Trend Cycle technical indicators are known to be cyclical oscillators that are generated by calculating the Stochastic over MACD (moving Average Convergence Divergence) line using cycles.
The central idea is that a chart is more or less unaffected by short-term trends that unavoidably pop up on the market.
On the other hand, the Schaff Trend CCI Metatrader 5 forex indicator is a modified Schaff Trend Cycle indicator that calculates CCI (Commodity Channel Index) instead of Stochastic.
The indicator tries to gauge the behavior of the CCI when MACD is deployed as price.
Currency traders can interpret this indicator in two ways: either when the color of the line slope changes or when the zero line gets crossed.
The USD/JPY H1 chart below displays the Schaff trend CCI Metatrader 5 forex indicator in action.
Basic Trading Signals
Buy Signal: Go long when the ascending line slope of the Schaff trend CCI Metatrader 5 forex indicator turns green.
Sell Signal: Go short when the descending line slope of the Schaff trend CCI Metatrader 5 forex indicator turns crimson.
Exit buy trade: Close all buy orders if while a bullish trend is ongoing, the line slope of the Schaff Trend CCI indicator turns crimson.
Exit sell trade: Close all sell orders if while a bearish trend is running, the line slope of the Schaff Trend CCI indicator turns green.
Tips: Developers were able to attain a more stable and reliable result when testing the Schaff Trend CCI MT5 indicator, as such it is an appropriate signal generator for both day traders and scalpers.
MT5 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 5
Type: chart window indicator
Customization options: Variable (CCI period, Fast ema period, Slow ema period, Price), Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: oscillator | cycles
Copy and paste the Schaff trend CCI.ex5 indicator into the MQL5 indicators folder of the Metatrader 5 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL5 > Indicators (paste here)