McClellan Histogram Technical Analysis and McClellan Histogram MT5 Indicator

The McClellan Histogram is a graphical representation of the McClellan Oscillator MT5 Indicator and its signal line. This difference between the two is drawn as a histogram.

This is an oscillator MT5 indicator MT5 indicator, the center line is the zero crossover mark which is used to generate buy & sell signals.

McClellan Histogram

Forex Analysis and Generating 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 MT5 indicator to generate signals.

Zero-Level Crossover- When the histogram crosses above zero a buy signal is generated. Otherwise, when the histogram oscillator MT5 indicator MT5 indicator crosses below zero a sell signal is generated.

Technical Analysis in Forex Trading

Divergence Trading - divergence trading between this MT5 indicator and the price chart can prove to be very effective Forex strategy in spotting potential trend reversal signals and trend continuation signals.

There are several types of Trade Divergence 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 go to the divergence trading topic on this website