McClellan Histogram Commodities Technical Analysis and McClellan Histogram Trading Signals

The McClellan Histogram is a graphical representation of the McClellan Oscillator and its signal line. This difference between the 2 is drawn as a histogram.

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

McClellan Histogram

Commodity Technical Analysis & Generating Trading Signals

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

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

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

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

Technical Analysis in Commodities Trading

Divergence Commodities Trading - divergence trading between this indicator and the commodities trading price chart can prove to be very effective commodities trading strategy in identifying potential commodity trend reversal commodity signals and commodity trend continuation signals.

There are several types of Commodity Trading Divergence Commodities Trading Signals:

Commodities Trend Reversal Commodity Signals - Classic Divergence Signals

• Commodity Trading Classic Bullish Divergence Signals - Lower lows on commodities price chart & higher lows in the McClellan Histogram

• Commodity Trading Classic Bearish Divergence Signals - Higher highs on commodities trading price chart & lower highs in the McClellan Histogram

Commodities Trend Continuation Signals - Hidden Divergence Signal

• Commodity Trading Hidden Bullish Divergence Signals- Lower lows in McClellan Histogram and higher lows in commodities trading price chart

• Commodity Trading Hidden Bearish Divergence Signals- Higher highs in McClellan Histogram and lower highs in commodities trading price chart

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