McClellan Oscillator Silver Technical Analysis and McClellan Oscillator Trading Signals

Developed by McClellan.

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

McClellan Oscillator

Silver Trading Technical 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 silver signals.

Zero Center Line Crossover Signals:

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

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

Technical Analysis in Silver Trading

Divergence XAGUSD Trading Signals:

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

There are several types of divergences:

Classic XAGUSD Trading Divergence ( Regular XAGUSD Trading Divergence)

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

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

Hidden Silver Trading Divergence Setup

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

• Bearish Divergence: Lower highs in xagusd 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 xagusd 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 silver signals.