stelaraX - Schaff MACD Combo

stelaraX – Schaff MACD Combo

stelaraX – Schaff MACD Combo is a hybrid momentum oscillator designed to combine MACD trend momentum with the faster cycle detection of the Schaff Trend Cycle (STC). It applies an STC-style stochastic smoothing process directly to the MACD histogram to create a responsive signal line that highlights momentum shifts and potential turning points earlier than classic MACD signals.

This indicator is part of the stelaraX ecosystem, focused on clean technical analysis and AI-supported chart evaluation
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Core logic

The script first calculates a standard MACD (fast/slow EMAs with signal smoothing) and uses the MACD histogram as the underlying momentum engine. An STC process is then applied to the histogram through a two-stage stochastic normalization and iterative smoothing.

Key principles:

* MACD histogram represents momentum and trend pressure (MACD line minus signal line)
* the histogram is normalized with a stochastic process over a cycle length
* iterative smoothing (factor) reduces noise while keeping responsiveness
* the STC-MACD output is produced via a second stochastic stage and final smoothing
* overbought and oversold zones are defined at 75 and 25
* bullish signal triggers when STC-MACD crosses up through 25
* bearish signal triggers when STC-MACD crosses down through 75

This structure captures cycle-like momentum transitions while remaining anchored to the MACD momentum core.

Visualization

The script plots:

* a scaled MACD histogram in the background (semi-transparent) for context
* the STC-MACD line as the primary oscillator
* dashed reference lines at 75 (overbought) and 25 (oversold)
* triangle markers on bullish and bearish trigger events
* alert conditions for both signal types

This layout provides both “raw momentum pressure” (histogram) and “cycle-filtered signal” (STC-MACD) in one pane.

Use case

This indicator is intended for:

* detecting momentum turns earlier than traditional MACD crossovers
* identifying cycle swings within trending markets
* timing pullback entries using oversold/overbought transitions
* filtering trend continuation setups with histogram context
* supporting systematic and AI-assisted chart evaluation workflows

It works best when combined with structure context (support/resistance, liquidity zones) or a trend filter to avoid fading strong trends purely on oscillator extremes.

Disclaimer

This indicator is provided for educational and technical analysis purposes only and does not constitute financial advice or trading recommendations. All trading decisions and risk management remain the responsibility of the user.