McClellan Histogram 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, the center line is the zero crossover mark which is used to generate buy & sell signals.

McClellan Histogram

Technical Analysis & How to Generate Trade 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 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 price chart can prove to be very effective energies strategy in spotting potential trend reversal signals and trend continuation signals.

There are several types of Trade Divergence Energy Trading Signals:

Energies Trend Reversal Signals - Classic Divergence Signals

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

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

Energies Trend Continuation Signals - Hidden Divergence Signal

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

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

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