McClellan Oscillator EA Setup - Setting Up McClellan Oscillator Expert Advisor

McClellan Oscillator EA Setup - Setting Up McClellan Oscillator EA - A trader can come up with an McClellan Oscillator EA based on the McClellan Oscillator indicator explained below.

McClellan Oscillator EA rules can be combined with other Forex technical indicators to come up with other Expert Advisor Forex Robots that trade using rules based on two or more indicators combined to form a trading system.

McClellan Oscillator Forex Trading Technical Analysis & McClellan Oscillator Signals

Developed by McClellan.

The McClellan Oscillator is an indicator that's based on smoothing the difference between the number of bullish candles & bearish candlesticks. This technical indicator looks similar to the traditional MACD.

McClellan Oscillator - McClellan Oscillator EA Setup

Forex Trading Technical Analysis & How to Generate Signals

This Oscillator is a momentum indicator that can be traded in the same way as the MACD indicator. There are Three techniques that McClellan Oscillator can be used to generate trading signals.

Zero Center Line Forex Trading Crossover FX Trading Signals:

Bullish Signals- When the oscillator crosses above zero center-line a buy signal is given.

Bearish Signals- When the oscillator crosses below zero center-line a sell signal is given.

Technical Analysis - McClellan Oscillator EA Setup

Forex Trading Divergence FX Trading Signals:

Looking for divergences between the McClellan Oscillator and price can prove to be very effective in spotting the potential reversal &/or trend continuation points in price movement.

There are several types of divergences:

Classic Forex Trading Divergence ( Regular Forex Trading Divergence)

• Bullish Divergence: Lower lows in price action & higher lows in the McClellan Oscillator.

• Bearish Divergence: Higher highs in price & lower highs in the McClellan Oscillator.

Hidden FX Trading Divergence Setup

• Bullish Divergence: Higher lows in price action & lower lows in McClellan Oscillator.

• Bearish Divergence: Lower highs in price action & higher highs in McClellan Oscillator.

Overbought/Oversold Levels on Technical Indicator

The McClellan Oscillator is also used to identify potential overbought and oversold levels in price action movements. The overbought and oversold conditions are generated when the oscillator moves to extreme levels on one side and starts to turn, however, in a strong trending market the oscillator will stay in the overbought and oversold levels for a long time. It is not recommended to trade overbought and oversold levels to generate forex signals. The best signal to use is the Center-line crossover signals to generate trading signals.