fintech-algorithms
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Schaff Trend Cycle

Install and import#

bash
npm install fintech-algorithms
ts
import { schaffTrendCycle } from "fintech-algorithms/technical-indicators/momentum/schaff-trend-cycle";

Signature#

schaffTrendCycle(input)

Runs the MACD line through two stochastic passes, each followed by a 3-period EMA, turning a trend measure into a 0..100 cycle oscillator.

Parameters#

NameTypeNotes
inputTopicInputbars is a chronological array of OHLCV rows, each with a non-empty timestamp plus finite open, high, low, close and volume. From parameters this topic reads cycle_period (integer >= 2, default 10), the window for both stochastic passes. The 12/26 MACD lengths and the two 3-period EMA passes are fixed. The shared momentum preamble still validates period (default 14), fast_period (default 5) and slow_period (default 34) before branching, so a bad value for any of them throws even though this topic reads none of them.

Returns#

TopicResult

series and latest carry one key, value, the twice-stochastic, twice-EMA-smoothed MACD line. Four stacked stages make this the longest warm-up prefix in the family.

Warm-up#

The first 25 + 2 * (cycle_period + 1) bars (47 with the default cycle_period of 10) positions are null. The MACD line resolves at index 25 once the 26-period EMA seeds; each stochastic pass then costs cycle_period - 1 bars and each 3-period EMA two more, so ready_at is 47 on the canonical fixture.

Errors#

  • When cycle_period is not an integer >= 2 — throws Error
  • When bars is empty — throws Error

Complexity: time O(n * cycle_period), space O(n).

Worked example#

executed Captured by running this function on the input its own test provides. Real output of real code — but not asserted against a published figure.

Input#

input
{
  "bars": [
    {
      "timestamp": "2024-01-02",
      "basis": "synthetic-unadjusted",
      "open": 100,
      "high": 101.45,
      "low": 98.695,
      "close": 100,
      "volume": 750000,
      "benchmark": 200
    },
    {
      "timestamp": "2024-01-03",
      "basis": "synthetic-unadjusted",
      "open": 101.49111452,
      "high": 103.38381693,
      "low": 100.05480022,
      "close": 101.78791214,
      "volume": 795117,
      "benchmark": 200.56326135
    },
    {
      "timestamp": "2024-01-04",
      "basis": "synthetic-unadjusted",
      "open": 102.45519048,
      "high": 104.6701838,
      "low": 100.91147007,
      "close": 102.9549389,
      "volume": 840234,
      "benchmark": 201.11020913
    }
  ],
  "parameters": {}
}

Call#

schaffTrendCycle(input)

Returns#

object with 9 fields: topic_id, title, state, ready, ready_at, series, latest, parameters, …

{
  "topic_id": "D07-F03-A21",
  "title": "Schaff Trend Cycle",
  "state": "calculated",
  "ready": true,
  "ready_at": 47,
  "series": {
    "value": [null, null, null, null, null, null]
  },
  "latest": {
    "value": 6.810924814132896
  },
  "parameters": {},
  "diagnostics": {
    "causal": true,
    "input_count": 96
  }
}

Diagrams#

Schaff Trend Cycle — article hero
Schaff Trend Cycle — concept map
Schaff Trend Cycle — decision comparison
Schaff Trend Cycle — worked example

Calculation flow#

Schaff Trend Cycle calculation flow
flowchart LR
    A["an ordered price or OHLC series, declared lookbacks, smoot"] --> B["Validate order, basis, and finite values"]
    B --> C["Apply the selected Schaff Trend Cycle convention"]
    C --> D["Emit value, readiness, and diagnostics"]
    D --> E["Interpret descriptively; test outcomes separately"]
    B -->|invalid or insufficient| X["Withhold output with a reason"]
Schaff Trend Cycle readiness and evidence states
stateDiagram-v2
    [*] --> Waiting
    Waiting --> Ready: enough valid causal observations
    Waiting --> Rejected: malformed or unsupported input
    Ready --> Calculated: selected formula applied
    Calculated --> Interpreted: diagnostic and limitation retained
    Interpreted --> Ready: next observation arrives
    Rejected --> Waiting: corrected input and deterministic reset

How it works#

This page states the contract — how to call it correctly. The article explains the concept: why it works, and where it breaks.

Read the article →

References#

  • TA-Lib function groups — see linked primary or authoritative record
  • TA-Lib C/C++ API — see linked primary or authoritative record
  • TA-Lib maintained source — see linked primary or authoritative record
  • Evidence decision
  • Level 1 evidence map

The rest of the Momentum family#