Dough Schaff, was developed to improve upon the speed and accuracy of the MACD indicator when it comes to identifying trends. What we get is a faster cycle identifier – an great aid in identifying trend changes and finding faster entries and exits. Let’s compare charts with Schaff Trend Cycle Indicator bollinger bands forex pdf download MACD.
The 25 level is called a Buy level, the 75 – a Sell level. While indicator stays below the 25 – the downtrend is in progress. Buy order above the corresponding candle on a chart. Wait for the Buy order to be filled.
If the order is not filled, and the price continues lower – not a problem. Keep the pending order further while observing Schaff Trend Cycle behavior and new signals. Opposite true for Sell entries, where the indicator has to cross the 75 level down to send a signal about a trend change setup. The MACD is showing 2 different colors for histogram. This is an excellent website to find tons of indicators.