McClellan Histogram CFD Analysis and McClellan Histogram Signals

The McClellan Histogram is a graphical representation of the McClellan Oscillator & its signal line. This difference between the two is drawn as a histogram.

This is an oscillator, the center line is the zero crossover mark which is used to generate buy & sell trading signals.

McClellan Histogram

CFDs Analysis & Generating CFDs Signals

The Histogram is momentum indicator. Signals are generated using the center line cross-over technique.

• Bullish signal- Above Zero
• Bearish Signal - Below Zero

There are two fundamental techniques for using this indicator to generate trading signals.

Zero-Level Crossover- When the histogram crosses above zero a buy cfd signal is generated. Otherwise, when the histogram oscillator crosses below zero a sell trade signal is generated.

Analysis in CFD Trading

Divergence CFDs - divergence trading between this indicator & the price chart can prove to be very effective cfd trading strategy in spotting potential cfd trend reversal cfd signals and trend continuation signals.

There are several types of CFDs Trading Divergence Trade Signals:

Trend Reversal Signals - Classic Divergence Signals

• CFD Classic Bullish Divergence Signals - Lower lows on price chart and higher lows in the McClellan Histogram

• CFD Classic Bearish Divergence Signals - Higher highs on price chart and lower highs in the McClellan Histogram

Trend Continuation Signals - Hidden Divergence Signal

• CFD Hidden Bullish Divergence Signals- Lower lows in McClellan Histogram and higher lows in price chart

• CFD Hidden Bearish Divergence Signals- Higher highs in McClellan Histogram and lower highs in price chart

To Learn more about divergence go to the divergence trading topic on this site