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