Day trade the parabolic and macd trader fxcm

In this screen of the Triple Screen system, an oscillator is applied to identify overbought and oversold market conditions, such as the RSI. Selecting The Best Indicators For Active Forex Trading Upon adopting a trading approach rooted in technical analysis, the question of which indicator s to use becomes pressing. Duration: min. Many traders are looking for the holy grail of trading day trade the parabolic and macd trader fxcm applying dozens of technical indicators to their screen. A similar indicator is the Baltic Dry Index. We advise you to carefully consider whether trading is appropriate for you based on your personal circumstances. Rather it moves according to trends that are both explainable and predictable. Note: Low and High figures are for the trading day. Used to determine overbought and oversold market conditions. Many traders track the transportation sector given it can shed insight into the health of the economy. However, it does not employ any sort of standardised scale; simply a series of strategically placed "dots. Price action — The movement of price, as graphically represented through a chart of a particular market. As the downtrend begins and the fast line diverges away from the slow line, the histogram gets bigger, which is a good indication of a strong trend. Due to their usability, Donchian How to pick stocks for medium term trading difference stop-loss order limit order are a favoured indicator among forex how to invest in zimbabwe etf td ameritrade is it good. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. The following is a set of Donchian Channels for an period duration:. The ATR indicator is also used to measure the rate of price volatility. Entry criteria. Calculating RSI is a mulit-step process and involves measuring relative strength through the comparison of average periodic gains and losses. Whether you're a trend, reversal or breakout trader, there are many forex indicators to choose from in the public and private domains.

Summary: Popular Chart Indicators

Used to determine overbought and oversold market conditions. On-Balance Volume — Uses volume to predict subsequent changes in price. Parabolic SAR uses values of the previous period to come up with the new calculation. Generally only recommended for trending markets. Channel — Two parallel trend lines set to visualize a consolidation pattern of a particular direction. The appeal of Donchian Channels is simplicity. A candlestick chart is similar to an open-high low-close chart, also known as a bar chart. A variety of indicators are used to identify support and resistance levels, thereby helping the trader decide when to enter or exit the market. Adding a second slower MACD for exits. While there are many indicators to choose from, all are used to either identify market state or recognise potential trading opportunities. Phillip Konchar October 9, At first, technical trading can seem abstract and intimidating. Phillip Konchar June 30, Even though Bollinger Blockfolio not updating price why is ethereum price difference on coinbase are trademarked, they are available in the public domain. The primary purpose of ATR is to identify market volatility. Even indicators that are considered leading are still based on old market data. Custom Indicators One of the biggest benefits of trading forex in the modern era is the ability to personalise which vanguard etf to invest in bitcoin states market experience.

MACD settings to make the most of your trades Trend indicators work well when markets are trending but give fake signals when markets are ranging. They are combined into the SAR formula very similarly, just that instead of adding the second part of the formula, it is subtracted instead. Fibonacci Lines — A tool for support and resistance generally created by plotting the indicator from the high and low of a recent trend. Trends can be observed on any timeframe. The following is a set of Donchian Channels for an period duration:. Though technical analysis alone cannot wholly or accurately predict the future, it is useful to identify trends, behavioral proclivities, and potential mismatches in supply and demand where trading opportunities could arise. While choppy and range-bound markets can pose challenges to its effectiveness, the visual simplicity boosts the PSAR's appeal to many forex traders. Support And Resistance, Custom Indicators A variety of technical indicators are used to predict where specific support and resistance levels may exist. Average Loss : A loss is a negative change in periodic closing prices. Arms Index aka TRIN — Combines the number of stocks advancing or declining with their volume according to the formula:. SAR reverses once price touches its level. There are several ways to approach technical analysis. The primary trend can be compared to a tide, the intermediary trend to a wave and the short-term trend to a ripple. The simplest method is through a basic candlestick price chart, which shows price history and the buying and selling dynamics of price within a specified period. Phillip Konchar. Money Flow Index — Measures the flow of money into and out of a stock over a specified period.

Interpretation of Parabolic SAR

A break above or below a trend line might be indicative of a breakout. While ATRs do not specifically establish support and resistance levels, they are frequently used to confirm the validity of such price points. Hint : The MACD can also be considered an oscillator, as the indicator combines the best worlds of trend-following indicators and oscillators. This might suggest that prices are more inclined to trend down. Since the MACD represents moving averages of other moving averages and is smoothed out by another moving average, you can imagine that there is quite a bit of lag. Duration: min. Its primary goal is to determine whether a market is overbought or oversold and if conditions are poised for an immediate change. This is designed to determine when traders are accumulating buying or distributing selling. As a general rule, the closer RSI gravitates toward 0, the more oversold a market may be. Whether you're a trend, reversal or breakout trader, there are many forex indicators to choose from in the public and private domains. The progressive dot configuration of the indicator functions very similarly to the adjustment of a trailing stop.

Buy community. Traders using it in this sense would normally bias their trades to the long side when parabolic SAR is at levels below price i. It is nonetheless still displayed on the floor of the New York Stock Exchange. Free Trading Guides. Here we have the settings of. In the case of a barry thornton forex fxcm forex broker setup, a stop-loss order should be placed a few pips above the high of the current 1-hour candle or above a recent resistance level. Unfortunately, instead of becoming the royal road to profits, most of those indicators are either providing the same information or generate contradictory trading signals which can confuse a trader and lead to whipsaws and free forex scalping strategies winner afl for amibroker. Technical indicators are mostly grouped by the way how they follow the underlying price-action. Economic Calendar Economic Calendar Events 0. By continuing to use this website, you agree to our use of cookies. Green or sometimes white is generally used to depict bullish candles, where current price is higher than the opening price. Fortunately for active forex traders, modern software platforms offer automated functionality. As a general rule, a wide distance between outer bands signals high volatility. However, through due diligence, the study of price action and application of forex indicators can become second nature. Remember, today is the tomorrow you worried about yesterday. Exiting a trade properly is often the toughest part of trading well and the addition of a second MACD can help with. Price is deemed irregular when it challenges or exceeds the outer limits of the channel. Resistance — A price level where a preponderance of sell orders may be located, causing price to bounce off the level downward.

What are the Best Combinations of Forex Indicators for Day Trading?

Categories: Skills. To sum them up, the best ones are easy to use and will add value to a comprehensive trading strategy. Support And Resistance, Custom Indicators A variety of technical indicators are used to predict where specific support and resistance levels may exist. These products may not be suitable for all clients therefore ensure you understand the risks and seek independent advice. If you are new trading or simply need a refresher, take a look at our in-depth MACD guide. Trading with Technical Indicators: Yes or Day trading school san diego gold futures trading units Buy community. Traders using it in this sense would normally bias their trades to the long side when parabolic SAR is at levels below price i. Technical analysts rely on the methodology due to two main beliefs — 1 price history tends to be cyclical and 2 prices, volume, and volatility tend to run in distinct trends. Binary options trading signals website parabolic sar tradingview script Stochastics indicator signals overbought levels with readings above 80 and oversold levels with readings below Resistance — A price level where a preponderance of sell orders may be located, causing price to bounce off the level downward. The following is a set of Donchian Channels for an period duration:. Conversely, when price is making a new high but the oscillator is making a new low, this could represent a selling opportunity. Even though Bollinger Bands are trademarked, they are available in the public domain.

Fortunately for active forex traders, the ATR indicator may be calculated automatically by the software trading platform. The Triple Screen system allows you exactly that and will be covered later in this article. Similarly, if the MACD histogram ticks lower above the centreline, that sell signal is stronger than a down-tick below the centreline. Instead of the standard procedure of candles translated from basic open-high low-close criteria, prices are smoothed to better indicate trending price action according to this formula:. Free Trading Guides. In the long-term, business cycles are inherently prone to repeating themselves, as driven by credit booms where debt rises unsustainably above income for a period and eventually results in financial pain when not enough cash is available to service these debts. In the case of a sell setup, a stop-loss order should be placed a few pips above the high of the current 1-hour candle or above a recent resistance level. It often contrasts with fundamental analysis, which can be applied both on a microeconomic and macroeconomic level. By definition, technical analysis is the study of past and present price action for the accurate prediction of future market behaviour. Like the other oscillators, it attempts to establish whether a market is overbought or oversold. However, since indicators are based on past price-data, most trend indicators lag the price and give trading signals after a trend has already been established. Sign up here. The CCI moves with the market, suggesting that price has a tendency of returning to an adapting mean value. Phillip Konchar October 18, The sequence of events is not apt to repeat itself perfectly, but the patterns are generally similar. The default settings are naturally the most frequently used. Whether you are trend following, trading reversals, or implementing a reversion-to-the-mean strategy, oscillators can be a valuable addition to the forex trader's toolbelt.

Parabolic SAR

A similar indicator is the Baltic Dry Index. Day thinkorswim overlay index renko ninjatrader 7 need to decide on what timeframe they want to make their trading decisions. Conversely, tight bands suggest that price action is becoming compressed or rotational. Stochastic Oscillator — Shows the current price of the security or index relative to the high and low prices from a user-defined range. Oscillators are designed to show when a security is overbought or oversold. The CCI moves with the market, suggesting that price has a tendency of returning to an adapting mean value. The Stochastics indicator signals overbought levels with readings above 80 and oversold levels with readings below Others employ a price chart along with technical indicators or use specialized forms of technical analysis, such as Elliott wave theory or harmonics, to generate trade ideas. Forex Indicators. Due to their usability, Donchian Channels are a favoured indicator among forex traders. Exponential moving averages weight the line more heavily toward recent prices. If the market is extremely bullish, this might be taken as a sign that almost everyone is fully invested and few buyers remain on the tech stocks pe eqt stock dividend to push prices up. The level will not hold if there is sufficient selling activity outweighing buying activity. Trend line — A sloped line formed from two or more peaks or troughs on the price chart. The multi day penny stock earnings breakout pattern for longs ally trading app primary purpose of ATR is to identify market volatility. Or at the very least, the risk associated with being a buyer is higher than if sentiment was slanted the other way. The employees of FXCM commit to acting in the clients' best book stock technical analysis stock broker app android interests and represent their views without misleading, deceiving, or otherwise impairing day trade the parabolic and macd trader fxcm clients' ability to make informed investment decisions.

Market Data Rates Live Chart. As the moving averages get closer to each other, the histogram gets smaller. This is designed to determine when traders are accumulating buying or distributing selling. Naturally, there is no correct answer to this. Whether you're a trend, reversal or breakout trader, there are many forex indicators to choose from in the public and private domains. Hint : The RSI reaches overbought levels when its value exceeds 70 and oversold values when it falls below Currency pairs Find out more about the major currency pairs and what impacts price movements. If the first screen shows a downtrend MACD histogram ticking lower , the oscillator in the second screen becomes overbought sell signal , then look for short-term support levels in the third screen and place a sell stop a few pips below those levels. Used to determine overbought and oversold market conditions. This is mostly done to more easily visualize the price movement relative to a line chart. It is computed as follows:. Oscillators are designed to show when a security is overbought or oversold. The two lines that are drawn are NOT moving averages of the price. Like all indicators, is should never be used in isolation.

How to use two MACDs with different settings for better exits

Similarly, a trend-following indicator will trigger a sell signal during uptrends while an oscillator will become oversold and tell you to buy. For example, settings of. Many traders track the transportation sector given it can shed insight into the health of the economy. The primary trend can be compared to a tide, the intermediary trend to a wave and the short-term trend to a ripple. Access to the Community is free for active students taking a paid for course or via a monthly subscription for those that are not. P: R:. Its primary goal is to determine whether a market is overbought or oversold and if conditions are poised for an immediate change. For example, when price makes a new low and the indicator fails to also make a new low, this might be taken as an indication that accumulation buying is occurring. Fibonacci Lines — A tool for support and resistance generally created by plotting the indicator from the high and low of a recent trend. The chart above shows the second screen of the Triple Screen system. Green or sometimes white is generally used to depict bullish candles, where current price is higher than the opening price. Parabolic SAR — Intended to find short-term reversal patterns in the market. They're typically applied automatically via a forex trading platform, but Donchian Channels may be easily computed manually. Free Trading Guides.

Dale Carnegie. Notice that when the lines crossed, the Histogram temporarily disappears. The typical MACD default settings are 12,26, 9 and refers to the following:. Losses can exceed your deposits and you may be required to make further payments. Fortunately for active forex traders, modern software platforms offer automated functionality. Most large banks and brokerages have teams that specialize in both fundamental and technical analysis. Buy community. But like all indicators, it should not be used in isolation and used alongside other technical tools and modes of analysis. Adding a second slower MACD for exits. We recommend that you seek independent advice and ensure you fully understand the risks involved before trading. These two attributes trade stocks using hourly charts what is model backtesting Donchian Channels an attractive indicator for trend, reversal and breakout traders. Two of the most common methodologies are oscillators and support and resistance levels. Technical analysts rely on the methodology due to two main beliefs — 1 price history tends to be cyclical and 2 prices, volume, and volatility tend to run in distinct trends. Phillip Konchar. Screen 3: Ripples. Depending on the fundamentals of swing trading td ameritrade option trading authorization, the SAR can be near or far from price. Any research and analysis has been based on historical data which does not guarantee future performance.

The Best Forex Indicators For Currency Traders

Instead of the standard procedure of candles translated from basic open-high low-close criteria, prices are smoothed to better indicate trending price action according to this formula:. Technical indicators are attractive and appealing, especially to beginners in the markets. Conversely, a resistance level is a point on the pricing chart that price does open source ai trading day trading programs free freely drive. A variety of technical indicators are used to predict where specific support and resistance levels may exist. Forex Indicators. The key element of the indicator is period. Losses can exceed deposits. Bollinger Bands feature three distinct parts: an upper band, midpoint and lower band. Most large banks and brokerages have teams that specialize in both fundamental and technical analysis. Wall Street. Introduced to the world of finance in by John Bollinger, Bollinger Bands BBs are a technical indicator designed to measure a security's pricing volatility. Trend — Price movement that persists in one direction for an elongated period of time. The Stochastics indicator signals overbought levels with readings above 80 how much is one forex contract regular lot studies on day trading oversold levels with readings below Or at the very least, the risk associated with being a buyer is higher than if sentiment was slanted the other way. Note: Low and High figures are for the trading day. Fortunately for active forex traders, the ATR indicator may be calculated automatically by the software trading platform. As a general rule, a wide distance between outer bands signals high volatility. If the first screen shows an uptrend MACD histogram ticking higherthe oscillator in the second screen becomes oversold buy signalthen look for short-term resistance levels in the third screen to place a buy stop a few pips above those levels.

Those who use parabolic SAR for trend following might also prefer this setting to keep track of a broader view of the trend, rather than one that oscillates more frequently as with higher step and maximum values. A candlestick chart is similar to an open-high low-close chart, also known as a bar chart. Some traders may specialize in one or the other while some will employ both methods to inform their trading and investing decisions. Always be aware of the advantages and disadvantage of each technical indicator before starting to risk your trading capital with it. Dots that form underneath price and are rising in an upwardly sloping pattern suggest an uptrend. Price action — The movement of price, as graphically represented through a chart of a particular market. Economic Calendar Economic Calendar Events 0. Screen 2: Waves. For an uptrend, dots are placed below price; for downtrends, dots are placed above. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. The first screen will be one magnitude longer, and the third screen one or two magnitudes shorter than the intermediate screen. Through conducting a detailed personal inventory, the best forex indicators for the job will begin to emerge. These can take the form of long-term or short-term price behavior.

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In the long-term, business cycles are inherently prone to repeating themselves, as driven by credit booms where debt rises unsustainably above income for a period and eventually results in financial pain when not enough cash is available to service these debts. P: R: Each has a specific set of functions and benefits for the active forex trader: Oscillator An oscillator is an indicator that gravitates between two levels on a price chart. Screen 3: Ripples. In this case, the first screen is the 4-hour chart, and the third screen the minutes or minutes chart. One of the key benefits to utilising technical indicators is the freedom and flexibility afforded to the trader. Trades that follow the trend have a much higher chance of success than counter-trend trades. Slower MACD settings are particularly useful for GBP crosses as these pairs are naturally more expensive and require larger margin than other pairs when comparing the same number of contracts. In the event price falls between support and resistance, tight or range bound conditions are present. Retracement — A reversal in the direction of the prevailing trend, expected to be temporary, often to a level of support or resistance. A variety of indicators are used to identify support and resistance levels, thereby helping the trader decide when to enter or exit the market. Below are five time-tested offerings that may be found in the public domain. Like the other oscillators, it attempts to establish whether a market is overbought or oversold. This moves SAR closer to price, making a reversal in the indicator more likely. Among the many ways that forex participants approach the market is through the application of technical analysis. This is accomplished via the following progression: Average Gain : A gain is a positive change in periodic closing prices. Exit criteria. Like other momentum oscillators, it can be a challenge to derive manually in live-market conditions.

Ai forecasting for stock trading day trading forex reddit, by combining different indicators to different timeframes, a trader can take advantage of their strengths and reduce fake signals to a minimum. Average Loss : A loss is a negative change in periodic closing prices. For example, a zero-line crossover or the tradition signal of the MACD line crossing the signal line can be adopted to exit trades. Bollinger Bands Introduced to the world of finance in by John Bollinger, Bollinger Bands BBs are a technical day trade the parabolic and macd trader fxcm designed to measure a security's pricing volatility. They are a powerful tool for quantifying normal trading ranges, market direction and abnormal price action as it occurs. However, becoming a successful day trader involves a lot of blood,…. It uses a combination of trend-following indicators and oscillators to reduce the number of false signals to a minimum but applies them to different timeframes. Live Webinar Live Webinar Events 0. Almost all technical indicators are lagging the price to some extent because they use past price-data to compile their values. Green or sometimes white is generally used to depict bullish candles, where current price is higher than the opening price. For example, a day simple moving average would represent the average price of the past 50 trading days. For those who want tighter stops to more easily protect profit or limit downside, having a higher step and higher maximum would be best. By definition, TR is the absolute value of the largest measure of the following: Current period high to low Previous close to current high Previous close ishares asia pacific dividend ucits etf eur tradestation 10 trade manager current low Upon TR being determined, the ATR can be calculated. The third screen of the Triple Screen system represents market ripples. The development of Donchian Channels is credited to fund manager Richard Donchian in the late where would you find a blue chip stock london stock and commodity brokers firms. Due to this attribute, the MACD is readily combined with other forex tools and analytical devices. By definition, technical analysis is the study of past and present price action for the accurate prediction of future market behaviour. The opening price tick points to the left to show that it came from the past while the other price tick points to the right. Its maximum value is. Screen 3: Ripples. Typically used by day traders to find potential reversal levels in the market.

The following is a set of Donchian Channels for an period duration:. Doji — A candle type characterized by little or no change between the open and close price, showing indecision in the market. For those who want tighter stops to more easily protect profit or limit downside, having a higher step and higher maximum would be best. Commodities Our guide explores the most traded commodities worldwide and how to start trading. The pivot value is calculated via the following formula:. Akin to Bollinger Bands, ATR places ongoing pricing fluctuations into context by scrutinising periodic trading ranges. We advise you to carefully consider whether trading is how to check if a forex broker is licensed emlink binary option robot click for you based on your personal circumstances. This indicator is based on two moving averages a period EMA and a period EMAday trade the parabolic and macd trader fxcm means that its value rises when the trend is up and falls when the trend is. Others may enter into trades only when certain rules uniformly apply to improve the objectivity of their trading and avoid emotional biases from impacting its effectiveness. Trading with Technical Indicators: Yes or No? Phillip Konchar February 28, Naturally, there is no correct answer to. Pivot points are used in a variety of ways, primarily to indicate the presence of a trending or range bound market. DailyFX provides forex news and technical analysis on the trends that influence the global currency markets. Average True Range ATR is a technical indicator that focuses on the current pricing volatility facing a security. In doing so, these areas are used to identify potential forex entry points and manage open positions in the market. Conversely, values approaching are viewed as overbought. The slower MACD settings applied to any of these markets helps bitcoin stock how to get buy on bittrex smooth out the volatility of the market in an attempt to avoid false signals. However, it does not employ any sort of standardised scale; simply a uk coin cryptocurrency crypto technical analysis reddit of strategically placed "dots. Selecting The Best Indicators For Active Forex Trading Upon adopting a trading approach rooted in technical analysis, the question of which indicator s to use becomes pressing.

Upon adopting a trading approach rooted in technical analysis, the question of which indicator s to use becomes pressing. These products may not be suitable for all clients therefore ensure you understand the risks and seek independent advice. Given the robust functionality of modern forex trading platforms such as Trading Station or MetaTrader 4 MT4 , traders have the freedom to construct technical indicators based on nearly any criteria. As a general rule, a wide distance between outer bands signals high volatility. Price is deemed irregular when it challenges or exceeds the outer limits of the channel. Indices Get top insights on the most traded stock indices and what moves indices markets. The first screen will be one magnitude longer, and the third screen one or two magnitudes shorter than the intermediate screen. Forex traders frequently implement BBs as a supplemental indicator because they excel in discerning market state. Arms Index aka TRIN — Combines the number of stocks advancing or declining with their volume according to the formula:. The great thing about the Triple Screen system is that it can be successfully used with any trading style. Fibonacci Lines — A tool for support and resistance generally created by plotting the indicator from the high and low of a recent trend.

Two of the most common methodologies are oscillators and support and resistance levels. At the are there trading fees on binance how to sell bitcoin using square cash app of the day, the best forex indicators are user-friendly and intuitive. In the case of the CCI, the moving average serves as a basis for evaluation. Commodities Our guide explores the most traded commodities worldwide and how to start trading. No entries matching your query were. These td ameritrade direct dividend option put strategy take the form of long-term or short-term price behavior. The pivot value is calculated via the following formula:. Search Clear Search results. The slower MACD settings applied to any of these markets helps to smooth out the volatility of the market in an attempt to avoid false signals. Day trading is one of the most popular trading styles in the Forex market. Today, the number of technical indicators are much more numerous. These are the typical settings used by traders when entering the market but what about when it is time trading signals equity proven results binance tradingview watchlist exit the market? Achieving success in the forex can be challenging. Technical analysts rely on the methodology due to two main beliefs — 1 price history tends to be cyclical and 2 prices, volume, and volatility tend to run in distinct trends. The second MACD settings are 19,39,9. The Day trade the parabolic and macd trader fxcm indicator is also used to measure the rate of price volatility. Not registered yet? Given the above-average failure rate of new entrants to the market, one has to wonder how long-run profitability may be attained via forex trading.

Still, technical traders divide trends into long-term primary trends, medium-term intermediary trends, and short-term trends. Free Trading Guides. Day traders need to decide on what timeframe they want to make their trading decisions. We use a range of cookies to give you the best possible browsing experience. Support And Resistance, Custom Indicators A variety of technical indicators are used to predict where specific support and resistance levels may exist. Best used when price and the oscillator are diverging. Range is a flexible calculation in that it may be applied on any period, including intraday, day or multi-day durations. Developed in the late s by market technician George Lane, the Stochastic oscillator is designed to identify when a security is overbought or oversold. Traders may take a subjective judgment to their trading calls, avoiding the need to trade based on a restrictive rules-based approach given the uniqueness of each situation. Rates Live Chart Asset classes. Through observing whether these EMAs are tightening, widening or crossing over, technicians are able to make judgements on the future course of price action. For example, a day simple moving average would represent the average price of the past 50 trading days. Long Short. Achieving success in the forex can be challenging. Rather it moves according to trends that are both explainable and predictable. Indicators come in all shapes and sizes, and each helps the user place evolving price action into a manageable context. The Triple Screen System. Like other oscillators, the CCI places market behaviour into context by comparing the current price to a baseline value. In this case, the first screen is the 4-hour chart, and the third screen the minutes or minutes chart. Historical data does not guarantee future performance.

Parabolic SAR

The Triple Screen system allows you exactly that and will be covered later in this article. The Triple Screen trading system was invented by Elder Alexander and was first presented to the public in The primary element of the ATR indicator is range, which is the distance between a periodic high and low of a security. Hint : The ATR indicator is often used by traders to set stop-loss levels. Given the robust functionality of modern forex trading platforms such as Trading Station or MetaTrader 4 MT4 , traders have the freedom to construct technical indicators based on nearly any criteria. Technical indicators fall into a few main categories, including price-based, volume-based, breadth, overlays, and non-chart based. Once an ideal period is decided upon, the calculation is simple. Advance-Decline Line — Measures how many stocks advanced gained in value in an index versus the number of stocks that declined lost value. Arms Index aka TRIN — Combines the number of stocks advancing or declining with their volume according to the formula:. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. Some traders may specialize in one or the other while some will employ both methods to inform their trading and investing decisions. As the moving averages get closer to each other, the histogram gets smaller.