Trade Forex Trading

McClellan Histogram Analysis and McClellan Histogram Signals

The McClellan Histogram shows the difference between the McClellan Oscillator and its signal line as a bar graph, which is known as a histogram.

This is a technical tool that goes up and down, and the line in the middle helps show when to buy or sell.

McClellan Histogram Analysis - McClellan Histogram Technical Indicator

McClellan Histogram

Technical Analysis and Generating Signals

Histogram tells about the power of a trade. Signals come from using the centerline crossing method.

  • Bullish trading signal - Above Zero
  • Bearish Signal - Below Zero

There are two main ways to use this indicator to help you find possible chances to trade.

Zero-Level Crossover Signal: When the indicator's histogram advances above the zero line, this issues a buy signal: conversely, if the histogram crosses beneath the zero mark, it generates a sell signal for trading.

McClellan Histogram Analysis - Indicator for McClellan Histogram Indicator

Technical Analysis of FX Trading:

Divergence Trading - A gap between this tool and price chart makes a solid Forex plan. It spots flips in trends or signals to ride the current move.

There are several types of Divergence Signals:

Trend Reversal Signals - Classic Divergence Trading Setup Signals

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

  • Classic Bearish Divergence Setup Signals - Higher highs on price chart & lower highs on McClellan Histogram

Trend Continuation Trading Signals - Hidden Divergence Trade Setup Signal

  • Hidden Bullish Divergence Trade Setup Signals- Lower lows in McClellan Histogram and higher lows on the price chart

  • Hidden Bearish Divergence Trade Setup Signals- Higher highs in the McClellan Histogram and lower highs on the price chart

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

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