McClellan Histogram Metals 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 indicator, the center line is the zero crossover mark which is used to generate buy and sell trading signals.
McClellan Histogram
Metals Analysis and 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 trading signals.
Zero-Level Crossover- When the histogram crosses above zero a buy metals signal is generated. Otherwise, when the histogram oscillator crosses below zero a sell metals trade signal is generated.
Technical Analysis in Metals Trading
Divergence Metals Trading - divergence trading between this indicator & the metals price chart can prove to be very effective metals trading strategy in identifying potential metals trend reversal metals signals and metals trend continuation signals.
There are several types of Metal Trading Divergence Metals Trading Signals:
Metals Trend Reversal Signals - Classic Divergence Signals
- Metals Trading Classic Bullish Divergence Signals - Lower lows on metals price chart and higher lows in the McClellan Histogram
- Metals Classic Bearish Divergence Signals - Higher highs on metals price chart and lower highs in the McClellan Histogram
Metals Trend Continuation Signals - Hidden Divergence Signal
- Metals Trading Hidden Bullish Divergence Signals- Lower lows in McClellan Histogram and higher lows in metals price chart
- Metals Hidden Bearish Divergence Signals- Higher highs in McClellan Histogram and lower highs in metals price chart
To Learn more about divergence navigate to the divergence trading topic on this site
