Nasdaq Futures are currently at $21,748, close to today’s VWAP, which shows a narrow trading range continuing from yesterday. The doji-like pattern indicates indecision in the market, with limited price movement suggesting little confidence in making big changes. A cautiously bullish outlook exists above $21,750, near the VWAP. Trading at this level has the potential for better rewards versus risks, although it comes with some uncertainty due to tighter stop placements. The Volume Profile highlights where the most trading activity occurs, with these high-volume areas providing strong support and resistance.

VWAP Prediction

VWAP helps predict Nasdaq prices and guides entry, exit, and stop-loss strategies using standard deviation bands. A bullish level is set above $21,750, with partial profit targets at $21,763.5, $21,771, and $21,789.5. Additional targets are $21,840, $21,855, and an ambitious $22,000. A bearish strategy activates below $21,740, just under yesterday’s VWAP. Quick profit-taking is advisable, with targets at $21,734, $21,726, and $21,713, among others. Traders should focus on taking profits at these levels to manage risk and adjust stops accordingly. This analysis comes from tradeCompass, which will soon be integrated with investingLive.com. Building on these observations, it’s important to understand what these technical signals mean as they influence our trading decisions. When the market forms a doji candle pattern at a price level where it has spent a lot of time, it often suggests a pause in direction—there’s no clear buying or selling pressure. So, when futures linger around the VWAP with minimal movement, it often indicates a tired trend or hesitation before a bigger decision. Currently, this is happening just above 21,700. There’s congestion in this price range as buyers and sellers both attempt to gain the upper hand without success. The VWAP acts like an anchor point around which recent trades fluctuate. When prices edge above 21,750, there’s usually more interest in testing previous highs or pushing above known resistance levels. This creates an opportunity for quick trades and small profits. Looking ahead, the goal is not to expect a huge price swing but to watch for smaller movements that align with earlier price points. The upper targets—once prices rise above the neutral line—are based on recent price ranges, making them less reliant on speculative breakouts.

Downside Strategy

On the downside, the same principles apply. Falling below 21,740 is significant because it’s below both an average and recent trading activity levels. This breach can eliminate support, leading to faster downward movements and lower support targets. It’s about reducing risk early rather than assuming those levels will hold. During quieter trading weeks, when volatility is low and prices coil around the VWAP, we focus on areas where prices have spent time instead of where large price movements happened. This allows for smaller trades with tighter stops and quicker exits—not because we predict a sudden price snap-back, but to protect our positions and avoid midday drift that can reduce profit opportunities. Thompson’s structured exit zones are based on these value areas, allowing partial profits to be taken before entering less liquid price zones. It’s also notable that upper targets don’t skip multiple levels; instead, they follow measured steps, inviting shorter holding times unless there’s a significant increase in volatility. Ultimately, a market session like this doesn’t require aggressive overnight positions or hasty short trades without clear breakdown signals. Instead, we watch for signs of impatience or stability in the market and use the standard deviation lines around the VWAP to define safe trading spaces. Create your live VT Markets account and start trading now.

here to set up a live account on VT Markets now