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

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

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

McClellan Oscillator Technical Analysis and McClellan Oscillator Forex Trading Signals

Developed by McClellan.

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

McClellan Oscillator - Forex McClellan Oscillator Expert Advisor Setup

Technical Analysis and Generating 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 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 - Forex McClellan Oscillator Expert Advisor Setup

Divergence Trading Signals:

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

There are several types of divergences:

Classic Divergence (Regular Divergence)

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

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

Hidden Divergence

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

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

Overbought/Oversold Levels

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 trading signals. The best signal to use is the Center-line crossover signals to generate trading signals.