McClellan Oscillator Expert Advisor Setup - Setting Up McClellan Oscillator Expert Advisor

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

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

McClellan Oscillator 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 candlesticks & bearish candles. This technical indicator looks similar to the traditional MACD.

McClellan Oscillator - McClellan Oscillator Expert Advisor Setup

FX 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 FX Crossover Forex Trading Signals:

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

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

Technical Analysis - Forex McClellan Oscillator Expert Advisor Setup

FX Divergence Forex 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 FX Divergence (Regular FX 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

• 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 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 Centerline cross over signals to generate trading signals.