McClellan Oscillator MT5 Indicator Analysis
Developed by McClellan.
The McClellan Oscillator MT5 Indicator is an indicator that is based on smoothing the difference between the number of bullish candlesticks and bearish candlesticks. This MT5 indicator looks similar to the traditional MACD.
McClellan Oscillator
Technical Analysis & How to Generate Signals
This Oscillator MT5 Indicator is a momentum indicator that can be traded in the same way as the MACD indicator. There are 3 techniques that McClellan Oscillator MT5 Indicator can be used to generate signals.
Zero Center-line Crossover Signals:
Bullish Signals- When the oscillator MT5 indicator MT5 indicator crosses above zero center-line a buy signal is given.
Bearish Signals- When the oscillator MT5 indicator MT5 indicator crosses below zero center-line a sell signal is given.
Technical Analysis in Forex Trading
Divergence Signals:
Looking for divergences between the McClellan Oscillator MT5 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 FX Trading Divergence)
- Bullish Divergence: Lower lows in price action and higher lows in the McClellan Oscillator.
- Bearish Divergence: Higher highs in price & lower highs in the McClellan Oscillator.
Hidden Trading Divergence Setup
- Bullish Divergence: Higher lows in price action and lower lows in McClellan Oscillator.
- Bearish Divergence: Lower highs in price action & higher highs in McClellan Oscillator.
Overbought/Oversold Levels on Indicator
The McClellan Oscillator MT5 Indicator is also used to identify potential overbought and oversold levels in price action movements. The overbought and oversold conditions are generated when the oscillator MT5 indicator MT5 indicator moves to extreme levels on one side and starts to turn, however, in a strong trending market the oscillator MT5 indicator MT5 indicator will stay in the overbought and oversold levels for a long time. It is not recommended to trade overbought and oversold levels to generate signals. Best signal to use is the Center-Line cross over signals to generate signals.
