McClellan Oscillator Bitcoin Analysis & McClellan Oscillator Trading Signals

Developed by McClellan.

The McClellan Oscillator is an indicator that is based on smoothing the difference between the number of bullish candles and bearish candles. This technical indicator looks similar to the traditional MACD.

McClellan Oscillator

BTCUSD Analysis & How to Generate Trading Signals

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

Zero Center Line Crossover Signals:

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

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

Technical Analysis in BTCUSD Trading

Divergence Bitcoin Trading Signals:

Looking for divergences between the McClellan Oscillator and bitcoin price can prove to be very effective in identifying potential reversal &/or trend continuation points in bitcoin price movement.

There are several types of divergences:

Classic Bitcoin Trading Divergence (Regular Bitcoin Trading Divergence)

• Bullish Divergence: Lower lows in bitcoin price action and higher lows in the McClellan Oscillator.

• Bearish Divergence: Higher highs in bitcoin price and lower highs in the McClellan Oscillator.

Hidden Bitcoin Trading Divergence Setup

• Bullish Divergence: Higher lows in bitcoin price action and lower lows in McClellan Oscillator.

• Bearish Divergence: Lower highs in bitcoin price action and higher highs in McClellan Oscillator.

Overbought/Oversold Levels on Technical Indicator

The McClellan Oscillator is also used to identify potential overbought and oversold levels in bitcoin price action movements. The overbought and 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 and oversold levels for a long time. It is not recommended to trade overbought and oversold levels to generate cryptocurrency signals. Best signal to use is the Center-line cross-over signals to generate bitcoin signals.