Trade Compass for Nasdaq Futures – February 10, 2025
Current Price: 21,690
Bias: Short (Fade the Move)
Short Activation Level: 21,708
Bullish Activation Level: 21,780
Trade Plan Overview for Nasdaq Futures Today
The Trade Compass today is, as usual, bullish above a key level and bearish below another. BUT… there is a condition for the bearish scenation whereby looking for price to reach 21,708 before considering shorts. A short setup is valid between 21,708 and 21,725, with 21,719 being a potential single-entry level.
If scaling into a position:
- First short entry at 21,709
- Second short entry at 21,717
- Third short entry at 21,725
- Suggested stop-loss (this is an example, you need to choose your stop): 21,735
The bullish scenario only activates above 21,780, meaning that if price clears Friday’s Value Area High convincingly, we shift to looking for long trades.
Bearish Targets Nasdaq Futures Today (Short Setup)
If the short is triggered within the 21,708 – 21,725 range, the profit-taking strategy involves scaling out at multiple levels:
- 21,686 – Above today’s developing POC
- 21,641 – Above today’s developing VAL
- 21,632 – Key level for additional profit
- 21,590 – Above Friday’s POC
- 21,568 – Above yesterday’s VAL
- 21,517 – Near today’s VWAP open
This staggered exit strategy ensures risk mitigation and profit realization, avoiding reliance on a single major move.
Bullish Targets for Nasdaq Futures Today (If 21,780 is Reached)
If price breaks above $21,780, these upside targets apply:
- 21,828 – Above the first upper VWAP deviation of Friday
- 21,856 – Intermediate resistance
- 21,886 – Higher probability resistance
- 21,940 – Just below the second upper VWAP deviation
- 22,002 – Above an old naked POC
A breakout above 21,780 suggests further continuation toward these levels.
Nasdaq Futures Trade Management & Risk Considerations
- If the second profit target is hit, consider moving your stop to breakeven.
- Some traders prefer adjusting stops after hitting the first target, but given today’s conditions, giving the trade more breathing room might be preferable.
- The bias today is toward fading the move (shorting the rally since Nasdaq futures opened this week), but what’s good about the TradeCompass is that it leaves both its bearish and bullish scenarios open.
Use this TradeCompass as a 2nd opinion, an orientation tool, integrating it into your own strategy. This is not financial advice. Trade responsibly. Trade Nasdaq futures at your own risk only.
For additional insights, visit ForexLive.com.