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