Schaff Trend Cycle

Schaff Trend Cycle is a VertexFX client side VTL indicator used to determine the two important characteristics of a trend – mainly its strength, and its cycle.

To calculate the indicator value, we first calculate the short term EMA (Exponential Moving Average) and the longer term EMA (Exponential Moving Average). The difference between the shorter EMA (Exponential Moving Average) and longer EMA (Exponential Moving Average) is also calculated. Then over a period of CYCLE bars, we calculate the highest and the lowest values of this difference between the shorter and longer MAs. Finally, the Schaff Trend Cycle is calculated by first subtracting the current difference in the EMAs, and then dividing it by the difference between the highest and lowest values and the difference in EMAs over the CYCLE period. This value is then bounded between 0 and 100.

The idea behind this indicator is that the faster EMA (Exponential Moving Average) responds quicker than the slower EMAs(Exponential Moving Average) to the price movements.

BUY – Place Buy position when the indicator rises gradually from 0.
SELL – Place Sell position when the indicator falls gradually from 100.

Usage

• Download the attachment from vStore or directly from the vStore tab in your terminal by performing a right click on it and selecting Download & Install
• Copy it to your company VertexFX Local VTL Files folder i.e. C:Program FilesCompany Namevtl10Local VTL Files
• Restart your Client Terminal or Right Click on “Local VTL Scripts” Tree Node to find the script.