Schaff Trend Cycle Markers

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-- SPDX-License-Identifier: MIT
-- IQOptionWiki QCS Library
-- IQOW Schaff Trend Cycle Markers v1.0.0
--
-- Price-chart companion of IQOW Schaff Trend Cycle (schaff-trend-cycle). It
-- draws no lines: only that script's HIGHER and LOWER markers, above and below
-- the candles on the price chart. A script with its own panel draws its
-- markers at the candle's price on the panel's axis, so on assets priced above
-- about 100 (for example JPY pairs) they fall outside the panel. Add IQOW
-- Schaff Trend Cycle as well to see the Schaff Trend Cycle line. Keep the
-- settings of both scripts equal.
--
-- The Schaff Trend Cycle (STC) applies a double stochastic smoothing to the
-- MACD of two EMAs. It moves between 0 and 100 faster than the MACD itself.
-- Formula follows the official IQ Option Schaff Trend Cycle indicator.
--
-- HIGHER: STC crosses above 25 (leaves the low zone).
-- LOWER:  STC crosses below 75 (leaves the high zone).
--
-- Markers use the previous completed candle: they appear after the next candle
-- opens and are shifted back one bar onto the candle that qualified.
-- Educational chart tool only. It does not place trades, choose an expiry,
-- predict outcomes, or guarantee results. Test on a Practice balance first.

instrument {
    name = "IQOW Schaff Trend Cycle Markers",
    short_name = "MK STC",
    overlay = true
}

input_group {
    "1. Schaff Trend Cycle",
    cycle_period = input (10, "Cycle period", input.integer, 2, 100),
    short_cycle = input (23, "Short EMA", input.integer, 2, 100),
    long_cycle = input (50, "Long EMA", input.integer, 3, 250)
}

input_group {
    "2. Levels",
    low_level = input (25, "Low level", input.double, 5, 45, 1, false),
    high_level = input (75, "High level", input.double, 55, 95, 1, false)
}

input_group {
    "Display and advice",
    signals_visible = input { default = true, type = input.plot_visibility },
    advice_enabled = input { default = false, name = "Enable platform advice", type = input.boolean }
}

input_group {
    "Colors",
    higher_color = input { default = "#25E154", type = input.color },
    lower_color = input { default = "#FF6C58", type = input.color },
    signal_text_color = input { default = "#FFFFFF", type = input.color }
}

-- MACD of two EMAs on the close.
macd_line = ema (close, short_cycle) - ema (close, long_cycle)

-- First stochastic of the MACD, then smoothed (factor 0.5).
local smoothing_factor = 0.5
macd_low = lowest (macd_line, cycle_period)
macd_range = highest (macd_line, cycle_period) - macd_low
first_stoch = iff (macd_range > 0, ((macd_line - macd_low) / macd_range) * 100, nz (first_stoch [1]))
first_smooth = iff (na (first_smooth [1]), first_stoch, first_smooth [1] + smoothing_factor * (first_stoch - first_smooth [1]))

-- Second stochastic on the smoothed series, then smoothed again.
smooth_low = lowest (first_smooth, cycle_period)
smooth_range = highest (first_smooth, cycle_period) - smooth_low
second_stoch = iff (smooth_range > 0, ((first_smooth - smooth_low) / smooth_range) * 100, nz (second_stoch [1]))
stc_value = iff (na (stc_value [1]), second_stoch, stc_value [1] + smoothing_factor * (second_stoch - stc_value [1]))

-- Current-bar scalars for the Lua rule logic.
local stc_now = get_value (stc_value, nil)
local stc_before = get_value (stc_value [1], nil)

local settings_are_valid = short_cycle < long_cycle and low_level < high_level

local data_is_ready =
    settings_are_valid and
    stc_now ~= nil and
    stc_before ~= nil and
    get_value (stc_value [long_cycle + cycle_period * 2], nil) ~= nil

-- Event: STC crosses a level on this candle.
higher_setup = conditional (
    data_is_ready and stc_before <= low_level and stc_now > low_level
)
lower_setup = conditional (
    data_is_ready and stc_before >= high_level and stc_now < high_level
)

-- Confirm only a new setup on the previous completed candle.
confirmed_higher = conditional (
    get_value (higher_setup [1], false) and
    not get_value (higher_setup [2], false)
)

confirmed_lower = conditional (
    get_value (lower_setup [1], false) and
    not get_value (lower_setup [2], false)
)

-- Markers on the price chart: HIGHER below the candle, LOWER above it. Offset -1
-- puts each one on the candle that completed the setup (the confirmation above
-- is evaluated when the next candle opens).
if signals_visible then
    plot_shape (
        confirmed_higher,
        "STC HIGHER",
        shape_style.triangleup,
        shape_size.small,
        higher_color,
        shape_location.belowbar,
        -1,
        "HIGHER",
        signal_text_color
    )

    plot_shape (
        confirmed_lower,
        "STC LOWER",
        shape_style.triangledown,
        shape_size.small,
        lower_color,
        shape_location.abovebar,
        -1,
        "LOWER",
        signal_text_color
    )
end

-- QCS advice is a platform notification state only; it does not place trades.
if advice_enabled and
    get_value (confirmed_higher, false) and
    not get_value (confirmed_lower, false) then
    advise (advice.buy)
elseif advice_enabled and
    get_value (confirmed_lower, false) and
    not get_value (confirmed_higher, false) then
    advise (advice.sell)
else
    advise (advice.neutral)
end