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What is the Schaff Indicator Suggesting For Vmware Inc (VMW)?

May 26, 2019 / Josh Clayton

Vmware Inc (VMW) shares have seen their Schaff Trend Cycle gradually downtrend this week over the past few sessions. While this indicates negative price momentum, it also suggests that if the reading moves into oversold territory (STC of 30), then the liklihood of a reversal greatly increases. Investors will be watching very closely over the next few days to see if the trend contiunes or reverses. The Schaff Trend Cycle (STC) indicator combines the common indicators of MACD & Stochastic. The benefit of the Schaff Trend Cycle is that it is meant to be quicker than the standard macd and stochastic signals. The indicator uses similar methods to a MACD i.e uses exponetial moving averages but applies a cycle factor to them. Then the ‘price’ is smoothed using a mofidied Wilders’ smoothing algorithm. The Schaff Trend Cycle indicator fluctuates between 0 and 100. Readings below 20 are considered oversold while readings above 80 are considered overbought. The STC indicator fluctuates betwe...