McClellan Histogram Energies Technical Analysis & McClellan Histogram Trading Signals

The McClellan Histogram is a graphical representation of the McClellan Oscillator and its signal line. This difference between the two 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 signals.

McClellan Histogram

Energy Technical Analysis & How to Generate Trading Signals

The Histogram is momentum indicator. Signals are generated using the center line crossover method.

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

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

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

Technical Analysis in Energy Trading

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

There are several types of Energies Trading Divergence Energy Trading Signals:

Energies Trend Reversal Energies Signals - Classic Divergence Signals

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

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

Energies Trend Continuation Signals - Hidden Divergence Signal

• Energies Trading Hidden Bullish Divergence Signals- Lower lows in McClellan Histogram and higher lows in energies price chart

• Energies Trading Hidden Bearish Divergence Signals- Higher highs in McClellan Histogram and lower highs in energies price chart

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