Nasdaq Futures Analysis by TradeCompass

NASDAQ Futures Analysis for Today – February 6, 2025

Key Levels and Trade Compass Strategy for NASDAQ Futures Trading

At the time of this NASDAQ futures analysis, the index is trading at 21,801, which is very close to our bearish threshold of 21,796. This means we will maintain a bearish bias below this level, while a bullish breakout will only be considered above 21,856.

Bearish Scenario for This NASDAQ Futures Prediction

• Bearish Threshold Level: Below 21,796
• First Bearish Profit Target: 21,777
  • Positioned just above the Point of Control (POC) of the session
  • Below VWAP at 21,791, which could trigger short-covering scalps
• Second Bearish Profit Target: 21,766
  • Aligned with the Value Area High (VAH) of January 21, a potential price reaction zone
• Third Bearish Profit Target: 21,729
  • Positioned just above the Value Area Low (VAL) of January 31, an important support level
• Extended Bearish Target for Swing Traders: 21,652.5
  • Above the POC of February 4, making it a key liquidity level that could be reached today

Bullish Scenario for This NASDAQ Futures Analysis

• Bullish Threshold Level: Above 21,856
• First Bullish Profit Target: 21,892
  • Just below the Value Area Low (VAL) of January 23
  • Close to the Point of Control (POC) of January 31, a major liquidity zone
• Psychological Round Number Target: 21,900 (optional for scalpers)
• Second Bullish Profit Target: 21,932
  • Positioned below the Point of Control (POC) of January 23, a strong resistance level
• Final Bullish Target for NASDAQ Futures: 22,003
  • Near the January 24 POC, a high-probability profit-taking zone

Trade Compass Strategy for NASDAQ Futures Traders

• One Trade Per Direction Rule:
  • If you enter a long position, take partial profits, update your stop, and then get stopped out, you can still take a short trade later—but no second long trade for the session (or vice versa).
  • This prevents overtrading and revenge trading, keeping traders disciplined.
• Stop-Loss Management Strategy:
  • Always move stop to entry once the first profit target is hit, ensuring risk-free trade management.

Educational Section: Understanding Key Levels in NASDAQ Futures Trading

What is the Value Area and How Does It Affect NASDAQ Futures?

The Value Area represents the price range where 70% of the previous session’s volume was traded. It helps traders understand where the majority of institutional interest is positioned, making it crucial for intraday trading.

• Value Area High (VAH): Acts as resistance, where sellers could step in.
• Value Area Low (VAL): Acts as support, where buyers might react.

Why is VWAP Important for NASDAQ Futures Trading?

The Volume Weighted Average Price (VWAP) is a key intraday benchmark used by institutional traders. It represents the average traded price adjusted for volume, making it a powerful tool to gauge market sentiment.

• Above VWAP: Indicates bullish sentiment with buyers in control.
• Below VWAP: Indicates bearish sentiment with sellers dominating.

What is the Point of Control (POC) in NASDAQ Futures?

The Point of Control (POC) is the price level where the most volume was traded during a session. It frequently acts as a magnet for price action, attracting pullbacks before the next move.

• A break above the POC often signals bullish momentum.
• A rejection at the POC can indicate potential reversals.

NASDAQ Futures Analysis for Today – Final Thoughts

This NASDAQ futures forecast provides clear trade levels and strategic price targets to navigate today’s session effectively. Traders should use these insights as an orientation, applying them in combination with their own technical and fundamental strategies.

The TradeCompass is not just about “above is bullish, below is bearish”—it’s a precise roadmap based on volume profile analysis, VWAP deviations, and liquidity levels, where surpassing key thresholds increases the probability of reaching profit targets. These levels are not random; they reflect where institutional traders have historically shown strong interest. And that’s where you should get interested, too.

For more live market updates and expert NASDAQ futures trading insights, visit ForexLive.com.

Trade NASDAQ at your own risk.

This article was written by Itai Levitan at www.forexlive.com.