McClellan Histogram Gold Analysis & 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, the center line is the zero crossover mark which is used to generate buy and sell trade signals.

McClellan Histogram

Gold 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 Cross-over - When the histogram crosses above the zero a buy signal is generated. Otherwise, when the histogram oscillator crosses below zero a sell signal is generated.

Analysis in Gold

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

There are several types of Divergence Trade Signals:

Gold Trend Reversal Signals - Classic Divergence Signals

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

• Gold Classic Bearish Divergence Signals - Higher highs on price chart and lower highs in the McClellan Histogram

Gold Trend Continuation Signals - Hidden Divergence Signal

• Gold Hidden Bullish Divergence Signals- Lower lows in McClellan Histogram and higher lows in price chart

• Gold Hidden Bearish Divergence Signals- Higher highs in McClellan Histogram & lower highs in price chart

To Learn more about divergence go to the divergence lesson on this website