I had been using clipdiary for a long time. It is quite good too. Then I have been facing some occasional issue with history menu popup not appearing in certain apps. So I am trying clipboardfusion and so far it is way more advanced and extendable using macros.

But is there a hotkey or macro to automatically paste previous and next clip upon release.

In clipdiary we could set for eg "ctrl + [" and "ctrl +]" to browse through history of clips one at a time. Each clip appear in a small popup. Reach the required clip and then "ctrl + v"

Another useful setting is that it could automatically paste upon releasing these hot keys. Just click ctrl + [ till u reach the required slip and release.. auto pasted!

Is there a similar macro or hotkey?

Ah! Thats great to know :)
Is there a documentation describing such functions?

It would have been useful if we could scroll both directions and release though in certain cases if we pass the required clip.
Why dont you start a wiki or github documentation so that we users can contribute to it?
For eg : https://github.com/rockettheme/docs