McClellan Oscillator Oil Technical Analysis and McClellan Oscillator Oil Trading Signals
Developed by McClellan.
The McClellan Oscillator is an indicator that is based on smoothing the difference between the number of bullish candles & bearish candlesticks. This oil indicator looks similar to the traditional MACD.
McClellan Oscillator
Oil Technical Analysis & How to Generate Crude Oil Trading Signals
This Oscillator is a momentum indicator that can be traded in the same way as the MACD indicator. There are 3 techniques that McClellan Oscillator can be used to generate oil signals.
Zero Center Line Crossover Signals:
Bullish Signals- When the oscillator crosses above zero center-line a buy crude oil trading signal is given.
Bearish Signals- When the oscillator crosses below zero center-line a sell crude oil trading signal is given.
Technical Analysis in Oil Trading
Divergence Oil Trading Signals:
Looking for divergences between the McClellan Oscillator and crude crude oil price can prove to be very effective in identifying potential reversal and/or oil trend continuation points in crude crude oil price movement.
There are several types of divergences:
Classic Crude Oil Trading Divergence (Regular Crude Oil Trading Divergence)
- Bullish Divergence: Lower lows in crude crude oil price action & higher lows in the McClellan Oscillator.
- Bearish Divergence: Higher highs in crude crude oil price & lower highs in the McClellan Oscillator.
Hidden Crude Oil Trading Divergence Setup
- Bullish Divergence: Higher lows in crude crude oil price action & lower lows in McClellan Oscillator.
- Bearish Divergence: Lower highs in crude crude oil price action and higher highs in McClellan Oscillator.
Oversold/Overbought Levels on Oil Indicator
The McClellan Oscillator is also used to identify potential overbought and oversold levels in crude crude oil 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 crude oil trading signals. best signal to use is the Center-line cross over signals to generate oil signals.
