McClellan Oscillator Gold Trading Analysis and McClellan Oscillator Trading 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

Gold Trading Analysis & How to Generate Trading 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 Crossover 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 in Gold Trading

Divergence XAUUSD Trading Signals:

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

There are several types of divergences:

Classic XAUUSD Trading Divergence ( Regular XAUUSD Trading Divergence )

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

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

Hidden Gold Trading Divergence Setup

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

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

Overbought/Oversold Levels on Indicator

The McClellan Oscillator is also used to identify potential overbought and oversold levels in xauusd 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 trading signals. Best signal to use is the Centerline cross over signals to generate trading signals.