McClellan Histogram Bitcoin Trading Analysis and McClellan Histogram Bitcoin Trading Signals

The McClellan Histogram is a graphical representation of the McClellan Oscillator and its signal line. This difference between the two is drawn as a histogram.

This is an oscillator indicator, the center line is the zero crossover mark which is used to generate buy and sell cryptocurrency signals.

McClellan Histogram

Bitcoin Trading Analysis and Generating Bitcoin Trading Signals

The Histogram is momentum indicator. Signals are generated using the center line crossover method.

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

There are two fundamental techniques for using this indicator to generate cryptocurrency signals.

Zero-Level Crossover- When the histogram crosses above zero a buy cryptocurrency signal is generated. otherwise, when the histogram oscillator crosses below zero a sell cryptocurrency signal is generated.

Technical Analysis

Divergence Bitcoin Trading - divergence trading between this indicator and the btcusd price chart can prove to be very effective bitcoin trading strategy in identifying potential bitcoin trend reversal cryptocurrency signals and bitcoin trend continuation signals.

There are several types of divergence signals:

Bitcoin Trend Reversal Signals - Classic Divergence Signals

• Bitcoin Trading Classic Bullish Divergence Signals - Lower lows on btcusd price chart and higher lows in the McClellan Histogram

• Bitcoin Trading Classic Bearish Divergence Signals - Higher highs on btcusd price chart and lower highs in the McClellan Histogram

Bitcoin Trend Continuation Signals - Hidden Divergence Signal

• Bitcoin Trading Hidden Bullish Divergence Signals- Lower lows in McClellan Histogram and higher lows in btcusd price chart

• Bitcoin Trading Hidden Bearish Divergence Signals- Higher highs in McClellan Histogram and lower highs in btcusd price chart

To Learn more about divergence navigate to the divergence trading topic on this website