McClellan MT4 Indicator and Signals

Developed by McClellan.

The McClellan MT4 Indicator is an MT4 Indicator that is based on smoothing the difference between the number of bullish candlesticks and bearish candlesticks. This MT4 Indicator looks similar to the traditional MACD.

McClellan MT4 Indicator

MT4 Indicator and How to Generate Trade Signals

This MT4 Indicator is a momentum MT4 Indicator that can be traded in the same way as the MACD MT4 Indicator. There are 3 techniques that McClellan MT4 Indicator can be used to generate trading signals.

Zero Center Line Crossover Signals:

Bullish Signals- When the MT4 Indicator crosses above zero center-line a buy signal is given.

Bearish Signals- When the MT4 Indicator crosses below zero center-line a sell signal is given.

MetaTrader 4 Indicator

Divergence Trading Signals:

Looking for divergences between the McClellan MT4 Indicator and price can prove to be very effective in spotting the potential reversal and/or trend continuation points in price movement.

There are several types of divergences:

Classic Divergence (Regular Divergence)

• Bullish Divergence: Lower lows in price action and higher lows in the McClellan MT4 Indicator.

• Bearish Divergence: Higher highs in price and lower highs in the McClellan MT4 Indicator.

Hidden Divergence

• Bullish Divergence: Higher lows in price action and lower lows in McClellan MT4 Indicator.

• Bearish Divergence: Lower highs in price action and higher highs in McClellan MT4 Indicator.

Overbought/Oversold Levels on Indicator

The McClellan MT4 Indicator is also used to identify potential overbought and oversold levels in price action movements. The overbought and oversold conditions are generated when the MT4 Indicator moves to extreme levels on one side and starts to turn, however, in a strong trending market the MT4 Indicator will stay in the overbought and oversold levels for a long time. It's not recommended to trade overbought and oversold levels to generate trading signals. Best signal to use is the Centerline cross over signals to generate trading signals.