First, here’s a quick look at NASDAQ-related news from the past 24 hours on InvestingLive.com.
How to trade NASDAQ today, according to tradeCompass
Treat this at your own risk and for educational purposes only. The prices in the NASDAQ analysis below are related to NASDAQ futures.
- Bullish if above 26,113
- Bearish below 26,037
- Current reference price 26,060
- The main bias swing is set at a tolerance above 26,336 for bulls or below 25,576 for bears.
Background and directional bias of the NASDAQ market
Currently, we’re situated between the trade compass lines with a slight southward trend. If you enter early, say under 26,070, your risk-reward ratio will be higher, though your odds of winning might drop. For more cautious traders, it’s wise to wait for a clear signal below 26,037 if going short or above 26,113 if going long. Waiting for that confirmation generally boosts your chances of success, but it tends to reduce your risk-reward ratio as your stop-loss orders widen and your targets approach with later entries.
Today’s Nasdaq Key Levels and Partial Profit Plan
Nasdaq Trader Bearish Line
Activate on a break and confirm below 26,037 (Our NASDAQ analysis prices always relate to NASDAQ futures).
As a day trader, consider your first target quickly at 26,011. The next liquidity area that often tries to counter-scallop is around 25,971, with 25,929 clipping intraday near previous levels.
For swing extent, 25,874 is where conservative expansions into heavier trade areas begin. 25,842 could be for deeper runs if you’re looking for follow-through. Then there’s 25,576, representing major tolerance bands that often have pauses. Should momentum increase, 25,498 will serve as a continual checkpoint, with a stretch goal of 25,307 right above the VWAP area from October 24.
Bullish path for Nasdaq traders
Activation occurs with breaks and confirmations over 26,113.
As a day trader, your first partial target could be 26,164, slightly below the value area high on October 28. Then there’s 26,217, just under the value area low on October 29 where flipping behavior is frequent. After that, look to 26,273 and then 26,287, as these are layered magnets for sellers.
For swing extensions, watch for 26,336, which serves as initial trend-building checkpoints, and if buyers maintain control, the next acceptance band is at 26,477. Ambitious swing targets for supply in higher timeframes could be 26,687.
Utilize this roadmap effectively. When the price is close to a threshold but fails to stabilize, a trade in the opposite direction may be triggered. If you break through the new threshold, your prior idea should be dismissed and you should already be out of that position.
Today’s Education Corner for Day Traders and Swing Traders: The Logic of Partial Gains
It’s pretty rare to pinpoint the exact turning point. Securing partial gains at logical waypoints like VWAP and large nodes rewards early accuracy, diminishes unresolved risk, and allows for capturing a higher quality segment of the movement.
Trade Management Reminder tradeCompass
- One transaction per direction
- Place the stop just beyond the activation point with a small buffer. Avoid putting the stop past the opposite threshold.
- Reassess your approach after reaching your first target. Move the stop to the entry after hitting your second target to protect your gains.
- If your first target is hit, cancel any pending orders on that same side.
- Confirmation can come from two closes above a threshold or a time-based hold, like 15 minutes. Match your strategy to your risk tolerance.
Notes on today’s Nasdaq analysis
If you’re comfortable accepting a lower probability, an early fade short below 26,070 is valid for a higher risk-reward scenario. The weekly swing tone gets better for bulls above 26,336 and for bears below 25,576, with potential to move towards 25,498 and 25,307 if macro pressures persist.
This NASDAQ strategy applies a tradeCompass approach that emphasizes the value area VWAP and liquidity pools.
Professional disclaimer
This is decision support and not investment advice. Markets involve risks, and losses can exceed your deposit. Always conduct your own research, adjust your positions as necessary, and trade at your own risk.
