McClellan Histogram Technical Analysis & McClellan Histogram Trading Signals

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

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

McClellan Histogram

Crude Technical Analysis & Generating 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 signals.

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

Technical Analysis in Oil Trading

Divergence Oil - divergence between this indicator & the crude trading price chart can prove to be very effective strategy in identifying potential trend reversal signals and trend continuation signals.

There are several types of Trade Divergence Signals:

Trend Reversal Crude Signals - Classic Divergence Signals

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

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

Trend Continuation Signals - Hidden Divergence Signal

• Trade Hidden Bullish Divergence Signals- Lower lows in McClellan Histogram and higher lows in crude trading price chart

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

To Learn more about divergence navigate to the divergence topic on this site