McClellan Histogram Gold Trading Analysis & McClellan Histogram Trading Signals

The McClellan Histogram is a graphical representation of the McClellan Oscillator and its signal line. This difference between the 2 is drawn as a histogram.

This is an oscillator, the center line is the zero crossover mark which is used to generate buy and sell trade signals.

McClellan Histogram

XAUUSD Analysis & How to Generate 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 indicator to generate trade signals.

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

Analysis in XAUUSD Trading

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

There are several types of Gold Trading Divergence XAUUSD Trade Signals:

Gold Trend Reversal Signals - Classic Divergence Signals

• Gold Trading Classic Bullish Divergence Signals - Lower lows on trading price chart & higher lows in the McClellan Histogram

• Gold Trading Classic Bearish Divergence Signals - Higher highs on price chart & 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 trading price chart

• Gold Trading Hidden Bearish Divergence Signals- Higher highs in McClellan Histogram and lower highs in trading price chart

To Learn more about divergence go to the divergence trading topic on this website