McClellan Histogram Oil Technical Analysis and McClellan Histogram Trading Signals
The McClellan Histogram is a graphical representation of the McClellan Oscillator & its signal line. This difference between the 2 is drawn as a histogram.
This is an oscillator indicator, the center line is the zero crossover mark which is used to generate buy & sell oil trade signals.
McClellan Histogram
Oil Technical Analysis & How to Generate Trading Signals
The Histogram is momentum indicator. Signals are generated using the center line cross over technique.
- Bullish signal- Above Zero
- Bearish Signal - Below Zero
There are two fundamental techniques for using this indicator to generate trade signals.
Zero-Level Crossover- When the histogram crosses above zero a buy oil signal is generated. Otherwise, when the histogram oscillator crosses below zero a sell oil trade signal is generated.
Technical Analysis in Crude Oil Trading
Divergence Oil Trading - divergence trading between this indicator and the crude oil price chart can prove to be very effective oil trading strategy in identifying potential oil trend reversal oil signals and oil trend continuation signals.
There are several types of Crude Oil Trading Divergence Oil Trading Signals:
Oil Trend Reversal Signals - Classic Divergence Signals
- Oil Trading Classic Bullish Divergence Signals - Lower lows on crude oil price chart and higher lows in the McClellan Histogram
- Oil Classic Bearish Divergence Signals - Higher highs on crude oil price chart and lower highs in the McClellan Histogram
Oil Trading Trend Continuation Signals - Hidden Divergence Signal
- Oil Trading Hidden Bullish Divergence Signals- Lower lows in McClellan Histogram and higher lows in crude oil price chart
- Oil Hidden Bearish Divergence Signals- Higher highs in McClellan Histogram and lower highs in crude oil price chart
To Learn more about divergence navigate to the divergence trading topic on this site
