Hull-Based Schaff Trend Cycle: Construction and Signal Use

Summary

The Schaff Trend Cycle is described as a double stochastic applied to MACD. In this variant, the MACD-style input is calculated from the difference between fast and slow Hull averages instead of exponential moving averages. The note presents the indicator’s construction at a high level, without giving formulas for the stochastic stages or parameter settings.

For use, traders may treat changes in the indicator’s color as signals or choose threshold levels that trigger signals. The document provides no charts, performance results, instrument guidance, or rules for confirming entries and exits. It therefore explains the indicator concept and possible signal conventions, but does not establish that either convention is profitable or suitable across markets.

Key ideas

• The indicator applies a double stochastic process to a MACD-like average difference.
• This version uses fast and slow Hull averages in place of exponential moving averages.
• Color changes or selected threshold levels can be used as signal triggers.
• The note provides no parameter guidance or evidence of trading performance.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.