TradeCompass for Nasdaq Futures, Jan 16 2025, 1 minute before the open

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:
  1. 21,700 – A quick target near a psychological round number.
  2. 21,770 – An intermediate target for momentum continuation.
  3. 21,833 – Just below the value area high from January 6th.

Bearish Setup (Below 21,610):

• Profit Targets:
  1. 21,552 – Above the January 7th VWAP.
  2. 21,481 – Just above the current POC at the time of this analysis.
  3. 21,411 – Above the value area high of January 15th.
  4. 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.

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