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McClellan Histogram Technical Analysis & McClellan Histogram Forex Trading Signals

The McClellan Histogram is a graphical representation of the McClellan Oscillator and its signal line. This difference between the two is plotted as a histogram.

This is an oscillator indicator, the center line is the zero cross-over mark which is used to generate buy & sell signals.

McClellan Histogram Analysis - McClellan Histogram Technical Trading Indicator - Indicator for McClellan Histogram Technical Indicator – No Nonsense Trading McClellan Histogram Indicator Described

McClellan Histogram

FX Technical Analysis & Generating Forex Trading Signals

The Histogram is momentum indicator. Signals are generated using the center-line cross over method.

  • Bullish signal- Above Zero
  • Bearish Signal - Below Zero

There are two fundamental techniques for using this indicator to generate trading signals.

Zero-Level Crossover- When the histogram crosses above the zero a buy trading signal is generated. Otherwise, when the histogram oscillator crosses below zero a sell trading signal is generated.

McClellan Histogram Technical Analysis - Technical Indicator for McClellan Histogram Indicator - How to Use Trading McClellan Histogram Forex Indicator in Trading Chart on Trading Software

Technical Analysis in FX Trading

Divergence Trading – divergence trading between this indicator & the price chart can prove to be very effective Forex trading strategy in identifying potential trend reversal signals and trend continuation signals.

There are several types of Forex Divergence FX Trading Signals:

Trend Reversal Signals - Classic Divergence Signals

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

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

Trend Continuation Signals - Hidden Divergence Signal

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

  • 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

 

Technical Indicators