How to trade with Schaff Trend Cycle

The indicator oscillates between 0 and 100 on the scale.
The 25 level is referred to the buy level and the 75 is the sell level.
The default settings for STC are Cycle 10, MA Short 23 MA Long 50.

Long Entry:

If the indicator shows below 25 a downtrend is in progress.

Once the line crosses up above the 25 level it indicates a change of trend. You would
place a buy stop above the corresponding candle on a chart.

If the order is filled, you can look to close the trade once the line moves below the 75 level.

If the order is not filled, and the line continues below the 25 level you can leave the order in for a short period but this will need to be moved if the line moves back above the 25 level at a lower price.

Schaff Trend Cycle Indicator (STC)

The Schaff Trend Cycle Indicator (STC) was developed by Dough Schaff, to improve upon the speed and accuracy of the MACD indicator for identifying trends. It uses a MACD Line (the difference between two exponential moving averages) through a reworked stochastic algorithm.

This creates a faster cycle identifier which is a great aid in identifying trend changes and finding entries and exits sooner than
a MACD would.

Short Entry:

If the indicator shows above 75 an uptrend is in progress.

Once the line crosses below the 75 level it indicates a change of trend. You would
place a sell stop below the corresponding candle on a chart.

If the order is filled, you can look to close the trade once the line moves above the 25 level.

If the order is not filled, and the line continues above the 75 level you can leave the order in for a short period but this will need to be moved if the line moves back below the 75 level at a higher price.