Nasdaq Technical Analysis & How to Trade Nasdaq Futures Today by TradeCompass

NASDAQ Futures Analysis – Trade Compass for February 19, 2025

NASDAQ Technical Analysis for Day Traders and Swing Traders

At the time of this analysis, NASDAQ futures (NQ) is trading at 22,187, moving quite fast as volatility remains high in the first 15 minutes of the U.S. session. Currently, price has not yet activated either the bullish or bearish mode, as it has not crossed above the bullish threshold of 22,195 nor below the bearish threshold of 22,173.

Key Bullish and Bearish Thresholds for Today

• Bullish above 22,195 → This is today’s Point of Control (POC), the price level where the most volume has transacted.
• Bearish below 22,173 → This is near the Value Area Low (VAL) at 22,178 and the 2nd lower standard deviation of the VWAP.

Since price is currently hovering between these thresholds, traders should watch for a sustained move above or below these levels before taking action. This is an orientation, and traders should align it with their own strategies and risk management.

Trade Plan: Profit Targets for Bulls and Bears

Bullish Scenario (Above 22,195 – POC of Today)

If price sustains above 22,195, long traders may look at the following targets:

1. 22,231 → 3rd standard deviation of today’s VWAP (quick target).
2. 22,258 → Value Area High (VAH) of yesterday (significant level).
3. 22,350 → A semi-round number, marking a potential resistance.
4. 22,400 → A round number, often acting as a psychological barrier.
5. 22,425.75 → All-time high, which is acting as a magnet for price.
6. Extended Target → 22,500 for traders who want to leave a runner.

Bearish Scenario (Below 22,173 – 2nd Lower Standard Deviation of VWAP)

If price sustains below 22,173, short traders can target:

1. 22,143 → VWAP from February 16 (first profit-taking level).
2. 22,109 → Just above the Value Area Low (VAL) of February 16.
3. 22,036 → 3rd lower standard deviation of VWAP from two days ago.
4. Swing Short Target → 22,042, which is near the low of February 14.

Swing traders can extend targets even further based on their strategy, potentially holding a runner position to a deeper level.

Understanding Key Market Levels

1. Value Area High (VAH) and Value Area Low (VAL)

The Value Area represents the price range where 70% of the previous day’s volume was traded.

• Value Area High (VAH) → The upper boundary of this range. When price moves above VAH and holds, it indicates buyers are in control, pushing price higher.
• Value Area Low (VAL) → The lower boundary of this range. If price drops below VAL and holds, it signals increased selling pressure.

2. Point of Control (POC)

The POC is the price level where the highest volume traded during a session. It often acts as an important support or resistance level.

• If price is above POC, the market bias leans bullish.
• If price is below POC, the market bias leans bearish.

3. VWAP (Volume Weighted Average Price) and Standard Deviations

The VWAP represents the average price weighted by volume, serving as a dynamic support and resistance indicator.

• Traders watch VWAP standard deviations to gauge overextended price movements.
• The 1st, 2nd, and 3rd standard deviations of VWAP highlight areas where price might revert or accelerate in a trend.

Final Thoughts – How to Use This Trade Compass

At this point, price has not yet triggered a bullish or bearish mode, as it remains in neutral territory between 22,195 and 22,173. Traders should:

• Monitor for a decisive move beyond these thresholds before committing.
• Consider taking positions accordingly at their own risk.
• Use partial profit-taking at key targets and manage risk accordingly.

This Trade Compass provides a structured “map” for traders, but execution depends on each trader’s strategy and risk tolerance.

For further perspectives and updates, visit ForexLive.com.

Good luck and trade wisely!

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