McClellan Histogram Bitcoin Analysis & McClellan Histogram 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 indicator, the center line is the zero cross-over mark which is used to generate buy & sell bitcoin signals.
McClellan Histogram
BTCUSD Trading Analysis & How to Generate Trading Signals
The Histogram is momentum trading indicator. Signals are derived/generated using the centerline cross-over method.
- Bullish signal - Above Zero
- Bearish Signal - Below Zero
There are 2 fundamental techniques/methods for using this indicator to generate signals.
Zero-Level Crossover- When the histogram crosses above zero a buy cryptocurrency signal is generated. Otherwise, when the histogram oscillator crosses below zero a sell btcusd signal is generated.
Technical Analysis in BTC USD Trading
Divergence - divergence between this technical indicator and the bitcoin price chart can prove to be an effective bitcoin strategy in identifying potential bitcoin trend reversal signals and bitcoin trend continuation trade signals.
There are several types of BTCUSD Trade Divergence Bitcoin Signals:
Bitcoin Trend Reversal Signals - Classic Divergence Signals
- Bitcoin Classic Bullish Divergence Signals - Lower lows on bitcoin price chart & higher lows on the McClellan Histogram
- Bitcoin Trade Classic Bearish Divergence Signals - Higher highs on bitcoin price chart and lower highs in the McClellan Histogram
Bitcoin Trend Continuation Signals - Hidden Divergence Signal
- Bitcoin Trade Hidden Bullish Divergence Signals- Lower lows in McClellan Histogram and higher lows in bitcoin price chart
- Bitcoin Trade Hidden Bearish Divergence Signals- Higher highs in McClellan Histogram and lower highs in bitcoin price chart
To Learn more about divergence go to divergence topic on this web site
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