McClellan Oscillator Expert Advisor Setup - Setting Up McClellan Oscillator Expert Advisor
McClellan Oscillator Expert Advisor Setup - Setting Up McClellan Oscillator Expert Advisor - A trader can come up with an McClellan Oscillator Expert Advisor based on the McClellan Oscillator indicator explained below.
McClellan Oscillator Expert Advisor rules can be combined with other indicators to come up with other Expert Advisor Bots that trade using rules based on two or more indicators combined to form a system.
McClellan Oscillator Analysis & McClellan Oscillator Signals
Developed by McClellan.
The McClellan Oscillator is an indicator that's based on smoothing the difference between the number of bullish candlesticks & bearish candles. This indicator looks similar to the traditional MACD.
McClellan Oscillator - McClellan Oscillator EA Setup
Forex Analysis & How to Generate Signals
This Oscillator is a momentum indicator that can be traded in the same way as the MACD indicator. There are Three techniques that McClellan Oscillator can be used to generate signals.
Zero Center Line Crossover Trade Signals:
Bullish Signals- When the oscillator crosses above zero center-line a buy signal is given.
Bearish Signals- When the oscillator crosses below zero center-line a sell signal is given.
Analysis - McClellan Oscillator Expert Advisor Setup
FX Divergence Trade Signals:
Looking for divergences between the McClellan Oscillator and price can prove very effective in spotting the potential reversal and/or market trend continuation points in price movement.
There are several types of divergences:
Classic Divergence (Regular Forex Trading Divergence)
- Bullish Divergence: Lower lows in price action & higher lows in the McClellan Oscillator.
- Bearish Divergence: Higher highs in price and lower highs in the McClellan Oscillator.
Hidden FX Trading Divergence
- Bullish Divergence: Higher lows in price action & lower lows in McClellan Oscillator.
- Bearish Divergence: Lower highs in price action and higher highs in McClellan Oscillator.
Overbought/Oversold Levels on Indicator
The McClellan Oscillator is also used to identify potential overbought and oversold levels in price action movements. The overbought & oversold conditions are generated when the oscillator moves to extreme levels on one side and starts to turn, however, in a strong trending market the oscillator will stay in the overbought & oversold levels for a long time. It's not recommended to trade overbought and oversold levels to generate signals. The best signal to use is the Centerline cross over signals to generate signals.
