Support is a level or an area where buying interest is strongly sufficient to overcome selling pressure.  Resistance is the opposite - a level or an area  where selling  interest is strongly sufficient to overcome buying  pressure. Thus Support and Resistance levels are areas where a  currency's momentum/trend may be slowed down, interrupted, halted or reversed.

Normally once a support level is broken, it acts as a resistance level, and vice versa. So when a
resistance level is clearly broken it will then revert to an initial support.

The FXM support and resistance levels for each currency pair are guides to opening and closing a position, as well as placing & executing stop loss orders, and projecting and taking profit.  The following are trading strategies using these support and resistance levels:

• *Buy at or near the  first support with tight stop below it  or under the next support level with  first profit target at or near that first resistance level, 2nd target on the next resistance level, and so forth.
   

• Sell at the break of a support with first profit target on the next support. Stop placed just above it or above first resistance.
   

• Sell at or near the resistance with stop placed above it or above the next resistance  level with profit target. on the first support, second profit target is the next support and so forth
   

• Buy at the break of a resistance with first profit target on the next resistance. Stop placed just below it or below first support
   

• Add to a profitable position on either break with stop placed on the first opened position, profit targeting the next level.
   

• Range trading  between support and resistance levels.  Can be done in Japanese, European and U.S. sessions
   

• Longer term trader can use these support and resistance levels to move stop loss  closer to the entry price if the trading becomes favorable, placing trailing stops for profiting positions and projecting target for running and maximizing profits.
  
  Note: Rather than taking profit/stop loss on the recommended level, you have discretion to settle your open positions if the next support/resistance level is not broken, taking a small profit, /small loss or break  even.
  
  Things To Remember

1. Plan your trade and trade your plan.

2. Do not over trade. Remember that preserving your capital is your first objective. There are always opportunities to trade as long as you have the equity.

3. Stop loss placement is encouraged at all times to protect equity from incurring further losses.

4. No one will always get both ends of the currency  rate, so don't hesitate to open a position near the planned entry price and  take profit near your profit target.
    

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Performance Information

FXM trading signals have been employed in a live account by their developer, generating actual , not hypothetical, returns of 103.6% over the 11 month life of the account.  Click here for further information.