TradeCompass for Nasdaq Futures (NQ, March 2025 Contract) – January 16, 2025
Current Context:
- Current Price: 21,4492 (1 minute before the market opens).
- Activation Level: 21,640
- This TradeCompass becomes active only if NQ reaches 21,640.
- Below this level, no directional bias is established.
Defined Range:
- Bullish Threshold: 21,681
- Above this level, the bias turns bullish.
- Bearish Threshold: 21,610
- Below this level, the bias turns bearish.
Trade Scenarios for NQ:
Bullish Setup (Above 21,681):
- Profit Targets:
- 21,700 – A quick target near a psychological round number.
- 21,770 – An intermediate target for momentum continuation.
- 21,833 – Just below the value area high from January 6th.
Bearish Setup (Below 21,610):
- Profit Targets:
- 21,552 – Above the January 7th VWAP.
- 21,481 – Just above the current POC at the time of this analysis.
- 21,411 – Above the value area high of January 15th.
- 21,312 – Above the January 15th VWAP.
Risk Management Guidance:
-
Stop-Loss Placement:
- After filling the first profit target, consider moving the stop to the entry price to mitigate risk.
- Ensure that stops are placed strategically to balance risk and allow room for price fluctuations within the defined range.
-
Scaling Out:
- Take partial profits at each level to secure gains while maintaining a position for further moves.
Strategy Overview:
This TradeCompass provides clear thresholds and targets, designed to guide traders on potential bullish or bearish opportunities only after NQ reaches 21,640. The approach ensures disciplined trading by waiting for a critical price activation level before taking positions.
Summary for today’s Nasdaq futures TradeCompass:
- Activation Level: 21,640
- Bullish Threshold: 21,681
- Bearish Threshold: 21,610
- Key Targets:
- Bullish: 21,700, 21,770, 21,833.
- Bearish: 21,552, 21,481, 21,411, 21,312.
Final Notes:
This fine-tuned TradeCompass for Nasdaq futures focuses on precision and disciplined execution. By waiting for the market to reach a critical activation level, traders can avoid unnecessary noise and act only when price reaches significant levels.
Disclaimer: This analysis is for educational purposes only. Always trade at your own risk and ensure sound risk management practices. For additional perspectives, visit ForexLive.com.