Schaff Trend Cycle MT4 Indicator – Free MT4 Indicator

In this strategy, we will cover the Schaff Trend Cycle MT4 Indicator which can effectively be used to determine trends that appear in a cycle, as its name suggests. As you might already know…if you can catch a cycle right, that’s all you need to crush the market. Let’s get this strategy rolling…

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Schaff Trend Cycle MT4 Indicator Settings

It is a short term strategy and we will use the M15 timeframe (for better consistency, please use higher time frames)

You can choose any currency pairs you like, but it is better to start with the most popular ones, like EUR/USD or EUR/GBP.

Here are the indicators:

1. Schaff Trend Cycle Indicator
2. Stochastic oscillator with the settings 21, 9, 9;
3. An exponential moving average with period 100.

Schaff Trend Cycle MT4 Indicator  Trading Rules

For any strategies to work consistently, you need to have a set of rules that you follow. Below you will find our Buy and Sell rules that we follow when using the Schaff Trend Cycle MT4 Indicator.

Schaff Trend Cycle MT4 Indicator – Buy Rule

Here are the signals that should be noticed prior to opening the long position:

• The EMA 100 has an upward direction;
• The Stochastic lines have crossed into the territory of oversold levels.
• The Schaff indicator line has breached the oversold level and has changed direction up getting to +10.

You should open the position when the price breaks above the 100 EMA line, often with a slight correction, considering all the 3 conditions mentioned above.

On the chart above, you can observe how the price broke the 100 EMA line upwards, and the other 3 signals for opening the long position were also present. The stop loss is set a few points below the EMA 100 line.

With this strategy, we don’t place the Take Profit stop order. You can take the profit manually when the price gets to overbought areas (Schaff indicator is at or above 90).

Schaff Trend Cycle MT4 Indicator – Sell Rule

The short position is considered when the following signals appear:

• The EMA 100 is directed downwards.
• The Stochastic lines have crossed each other at overbought levels
• The Schaff indicator line has breached the overbought level and has turned downwards to +90.

You should open the short position when the price breaks below the 100 EMA line, often with a slight correction, considering all the 3 conditions mentioned above.

Schaff Trend Cycle MT4 Indicator Trading Rule

On the chart above, you can note how the price action broke the 100 EMA line downwards, and the other 3 signals for opening the short position were also present.

Stop Loss – The stop loss is set a few points above the EMA 100. This is because a broken support turns into a resistance and when the price action breaks below this line, a pullback will be rejected at this line, thus allowing the stop loss to be made tighter.

Take Profit – As with the long position, we don’t use a stop order for taking profit. Instead, you can decide to close the position manually when the price gets to the oversold territory (Schaff indicator is at or below 10).

With such strategies based on support and resistance, the traders can place tight stop orders, having unlimited profit possibilities. The 2 momentum indicators can easily show you the oversold and overbought state, so you can monitor the positions and find the reversals signals what will show when to exit.

Time Frames
Technically speaking, you can use this indicator for all time frames. However, the shorter the time frame, you will see more fluctuation and possibly more whipsaw which may cause small losses that can eat up your portfolio quickly. We recommend that you use higher time frames like the 4H for better consistency.

Schaff Trend Cycle MT4 Indicator Download

We have provided this powerful trend trading indicator to you at no cost. We humbly request for your help to spread the word by sharing on one of the social platforms below. To unlock the download link, you just need to share this page to help us achieve our goal of helping more traders out there.

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Leave us a comment below to let us know your thoughts on this indicator. If you like this indicator, you might like see other indicators that we have carefully selected that will help you in your trading journey.

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