McClellan Oscillator for Indices - Oscillator Signals and Analysis

Developed by McClellan.

The McClellan Oscillator smooths the gap between bullish and bearish candles. It looks much like the standard MACD.

McClellan Oscillator Guide - Analyze McClellan Oscillator on MT4

McClellan Oscillator Indicator

Indices Technical Analysis and Methods to Generate Trading Signals

This tool shows how strong the price changes are and can be traded the same way as the MACD tool. There are three ways that the McClellan Oscillator Tool can be used to make signals.

Zero Centerline Crossover Signals:

Bullish signals occur when the oscillator line crosses above the zero line. This creates a buy signal for stocks.

Bearish Indicators: A sell signal for stocks is signaled when this oscillator crosses below the central zero line.

McClellan Oscillator Basics - How to Use McClellan Oscillator on MT4

Technical Analysis in Indices Trade

Divergence:

Spotting differences between the McClellan Oscillator and stock prices can help identify possible reversals or continuations in price trends.

There are several types of divergences:

Classic Index Divergence Trades (Regular Index 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 Stock Index Trade Divergence Trading Setup

Bullish Divergence: Higher lows in price action and lower lows on the McClellan Oscillator Indicator.

Bearish Divergence: Lower highs in price action & higher highs in the McClellan Oscillator Indicator.

Over-bought/Oversold Levels in Indicator

The McClellan Oscillator helps find overbought or oversold conditions in price action. These show up when the indicator reaches extreme points on one side and reverses. In a firm trend, it stays extreme longer. Skip trades based on overbought or oversold. Use center-line crossovers for reliable signals.

Learn More Lessons and Tutorials and Topics:

Trade Stock Indices